Despite the West's failure to adequately emerge from the global economic quagmire, Google is still raking in piles of cash as its second-quarter results show. The number of clicks on the web giant's search adverts increased by about 42 per cent from the same quarter last year, which offset the 16 per cent cut in cost-per-click …
My guess of what they plan to do with motorola, pure guess mind you
1: Strip out its software team, keep only those required after all, android is maintained in house, they can easily gear the base software to work for the motoroloa hardware.
2: Strip out the hardware team, limit the number of products on the market. After all motorola is basically competing against apple and google. I can see them limited the handset numbers and using motorola as more of a demo company. "This is how android phones shoudl be made" with like, one high and one low end model each iteration of android.
3: Gradually absorb motorola and turn it into google mobile.
Why? Well, laying off half the hardware / software team means lower costs, and the more experienced members they can always move on to android development rather than letting them go completely. Fewer handset types being released means fewer stockpiles and although this means less gross profit, the net profit would probably improve, and that's the figure which matters.
As for merging it totally into the google brand, well, that's just less in the way of advertising costs, and we all know how much google loves a unified brand. I'm honestly surprised they didn't rename youtube to googletube.
What do you do when you're known for software and let OEM parters make the hardware, but then cast the OEMs aside? You can make some quite powerful enemies in the process.
Why are Google and Microsoft both going to be making hardware if OEMs are so great at what they do? they either feel there's no money in software or they feel the hardware offerings aren't the best fit for the software.
>Why are Google and Microsoft both going to be making hardware if OEMs are so great at what they do?
In Google's case I don't think it had much to do with hardware at all. The Motorola purchase was all about patent defense against the Apple sue machine so that Apple would have to go after Google instead of its partners. I wouldn't be surprised if Google really winds down the hardware Moto is putting out (lol do they still make phones?).
How much of that was profit then?
just pay your tax
Re: Hey Google
Jim 59 the was going to be my comment as well!
If revenue was slightly up and Motorola counts for 10% of that, then doesn't that mean that revenue would have been down without Motorola? So Google is not "impervious to world's cash drain". Or have I missed something? Also if this:
"The number of clicks on the web giant's search adverts increased by about 42 per cent from the same quarter last year, which offset the 16 per cent cut in cost-per-click."
is true then how can this:
"The company banked revenues of $12.2bn (£7.76bn) in the quarter, up slightly from the same period in 2011"
The best thing to do with Motorola is bin all the software people responsible for Android outside of the US. It's not like they are doing that well, they still haven't managed to get ICS onto the Xoom and Razr for most of Europe yet.