The real reason behind Google’s acquisition of Motorola Mobility (USA)

Google’s mobile operating software – Android – has resulted in it controlling a dominant position in the mobile phone market, beating rivals Apple and Nokia to the number one spot. The acquisition of Motorola Mobility further earned Google access to over 17,000 patents, enabling the internet giant to protect its Android software from patent infringements.

A report by CNET offers an insight into the possible opportunities offered by such a merger to users. As per the report, this deal may enable Google to be the first to offer smartphone devices that completely replace a user’s personal computer (PC).

In terms of smartphones, Apple and Samsung offer extremely competitive services. However, if Google was to make the jump towards a functioning PC on a mobile phone, Apple could find itself in a lot of trouble.

The report highlights the massive appeal such a gadget would offer business customers. Most companies are moving business apps to either the cloud or private browser-based apps. Webtop-enabled Android devices — if they are well-orchestrated — could take a big bite out of the corporate sales of Windows.

While the PC supported smartphone sounds very impressive, Google still has a long distance to cover before it achieves this feat.

Apple: World’s most profitable Handset Vendor

According to the latest research from Strategy Analytics, Apple became the world’s most profitable handset vendor in Q3 2009. Nokia slipped into second position, as margins have been hit hard by both the economic downturn and a stagnant presence in the United States.
Alex Spektor, Analyst at Strategy Analytics, said, “We estimate Apple’s operating profit for its iPhone handset division stood at $1.6 billion in the third quarter of 2009. Apple overtook Nokia for the first time, which recorded a lower $1.1 billion of operating profit. With strong volumes, high wholesale prices and tight cost controls, the PC vendor has successfully broken into the mobile phone market in just two years.”
Neil Mawston, Director of the Wireless Device Strategies service (WDS) at Strategy Analytics, added, “Nokia’s profit margin for its handset division has been shrinking during the 2009 global economic downturn. Strategy Analytics believes that the United States, where Nokia now trails Apple in marketshare, is the key to Nokia’s recovery in 2010. A successful fight on Apple’s high-profit home turf can simultaneously help to revitalize Nokia’s margins and to put a check on Apple’s surging growth.”

Apple became the world’s most profitable handset vendor in Q3 2009, according to industry estimates. Nokia slipped into second position.

Apple’s operating profit for its iPhone handset division stood at $1.6 billion in the third quarter of 2009.

Apple overtook Nokia for the first time. Nokia recorded a lower $1.1 billion of operating profit.

Apple has successfully gate crashed the Mobile party and made its mark in just 2 years.

EDGE to make up 14% of the total mobile phone market in 2006

EDGE-enabled handsets have never attracted the same levels of attention that “sexier” technologies such as WCDMA and HSDPA have enjoyed. In fact EDGE can best be described as the Cinderella of the cellular handset world. However, recent forecasts from ABI Research indicate that the worldwide EDGE handset market will reach 148 million shipments in 2006, representing 14% of the total mobile phone market. Principal analyst Stuart Carlaw points out that, “EDGE is downplayed in the market because it cannot really provide a mobile broadband experience and is therefore not seen as being at the cutting edge of cellular handset evolution; it is viewed purely as an evolutionary step on the GSM ladder, and industry attention is very much focused on the newer technologies such as W-CDMA and HSDPA. That view is further compounded by the fact that operators do not actively report EDGE numbers in the public domain.”"However,” adds research director Jake Saunders, “This lack of general market attention belies the real importance of the role EDGE plays in delivering mobile services today and will play in the effective delivery of content in the network of tomorrow.”Apart from the sheer volume of EDGE handsets, the ABI Research analysts believe that the industry as a whole should pay more attention to this market because EDGE is the only choice for some carriers today to support any type of near-acceptable mobile broadband experience, especially those with no 3G licenses or those waiting for 4G. Carlaw adds, “When the prospects for EDGE are viewed in the context of next generation networks, its true value comes to light. The technology still represents the only viable choice for supporting seamless service delivery on a very wide area basis. Neither WiMAX nor LTE nor HSUPA will be rolled out with enough geographic coverage to guarantee minimum service requirements on a wide scale.”

Source- http://www.mobiletechnews.com

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