Motorola Buyout May Open Gates to More OEM Consolidation

By Don Reisinger  |  Posted 2011-08-15 Print this article Print


5. An opening for Microsoft

Could this be the opening Microsoft needs? It's certainly possible. As mentioned, Android vendors likely aren't too pleased with Google's decision. They might look elsewhere for an operating system for their top devices so they won't be in competition with Google for sales of Android mobile devices. Logically, the only place they would go is to the open arms of Microsoft and its Windows Phone 7 platform. Believe it or not, this might actually be good for Microsoft.

6. A shift in vendor share

Right now, Samsung is largely dominating the Android ecosystem, thanks to the popularity of its many smartphones, including the Galaxy S II. However, with Google's branding and cash behind it, expect Motorola's phones to start picking up market share quite quickly in the coming months and years to compete with Apple. Things are changing in the smartphone OEM market.

7. Consolidation in the smartphone space

With Google and Motorola combining forces, it might not be long before other handset makers, out of a sheer desire to not be trounced by huge competitors, start to merge. HTC might find a friend in, say, LG's mobile business. RIM might also find a company to merge with. At this point, it would appear that further consolidation is inevitable.

8. A major Microsoft acquisition?

With the potential for future consolidation in mind, it's entirely possible that Microsoft will acquire a handset vendor to keep up with Google. After all, Microsoft views Google-not Apple-as its chief competitor in the mobile space, and acquiring a vendor to offer a similar solution might make the most sense for the company right now. Recent rumors have suggested that RIM might be a potential acquisition target for Microsoft. Will that happen now? For RIM, it's a prime opportunity and for Microsoft it might just be a necessity.

9. Google tablets

The biggest issue for Google right now is that its Android platform has not gained much traction in the tablet space. With the help of Motorola, the search company might be able to change its luck. Sure, the Motorola Xoom didn't catch on, but now that the vendor has Google's cash behind it, the possibilities of improving upon that are endless. Expect a Google tablet refresh in short order that might just be able to take on Apple's iPad.

10. Serious regulatory scrutiny

Although Google says that the deal will be approved by regulatory agencies by the beginning of next year, that's not immediately apparent. Google has come under increased scrutiny as of late for its dominance in several markets. Its issues with privacy are still on the minds of lawmakers. Given Google's influence across the industry and its already dominant market share, expect serious regulatory scrutiny to be paid to this acquisition.

Follow Don Reisinger on Twitter by clicking here 

Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Since then, he has written extremely popular columns for, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at

Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel