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Eric Schmidt: We bought Motorola for more than patents

0. phoneArena 03 Sep 2011, 23:54 posted on

Google Chairman and former CEO Eric Schmidt spoke at the Dreamforce conference in San Francisco and said that Google's acquisition of Motorola was done for more reasons than just picking up a ton of patents; Scmidt made it clear that Google feels that Motorola has some "amazing products" on the way...

This is a discussion for a news. To read the whole news, click here

posted on 03 Sep 2011, 23:57

1. remixfa (Posts: 13902; Member since: 19 Dec 2008)


"These guys invested the RAZR"

woopsie :)

posted on 04 Sep 2011, 00:35

6. remixfa (Posts: 13902; Member since: 19 Dec 2008)


that was a pretty quick edit :)

posted on 04 Sep 2011, 06:29

16. protozeloz (Posts: 5371; Member since: 16 Sep 2010)


He should have come with another phone...... I would fire anyone related with it and erase the existence of it from people's mind

posted on 04 Sep 2011, 00:07 4

2. Droid_X_Doug (Posts: 5591; Member since: 22 Dec 2010)


I wonder how Google's attitude towards patents will shift once they build up a portfolio of patents. MS in the early years was echoing almost verbatim, the comments that Google is now making. But with time and a large patent portfolio (that at present is making MS more coin than sales of WP7...), attitudes change. It is just business.

posted on 04 Sep 2011, 00:09

3. engaged tech (unregistered)


"ultimately android will be dominant" by Steve Wozniak.
Do your best and f.ck the rest Motorola like in the past.

posted on 04 Sep 2011, 00:22

4. bobfreking55 (Posts: 866; Member since: 15 Jul 2011)


Motorola Droid Razr FTW. Clamshell Android Phones. Also, I trust google to create phones with updated OS always.

posted on 04 Sep 2011, 00:34 1

5. snowgator (Posts: 3197; Member since: 19 Jan 2011)


OF COURSE they bought Moto for their patents. That is why most of his discussion of the purchase revolved around the patent system. Translation:

"If only the system wasn't so screwed up that everyone is sueing everyone else just to see what will score them some cash and what doesn't, we wouldn't have had to drop a few of our many billions into this fine, fine hardware maker. But since we did, maybe we can have some fun with it while we got it!!"

I hope they do support Moto's handset division, which had really started to show some profit for the first time in a few years. It isn't like Motorola wasn't already all in on Android, so the fit is good. We will see future hand-in-hand developments and some exclusive goodies developed just for Moto. Hopefully they will not forget the other Mobile needs like some good basic phones for those who do not want smart phones, a segment of the market which is still strong and awfully neglected. That is IF Google keeps it past a couple of years. We shall see.....

posted on 04 Sep 2011, 00:37 3

7. remixfa (Posts: 13902; Member since: 19 Dec 2008)


speaking of which, im actually surprised we havent seen a simplified non touch screen version of android for regular texting, calling phones. Get them using it on the cheap ones to make it easier to move to a smartphone. "look grandma, this smartphone looks exactly like that cool flip phone i got ya last year! Now you can get on the internet too!"

posted on 04 Sep 2011, 05:45 3

14. snowgator (Posts: 3197; Member since: 19 Jan 2011)


Freaking great idea. Get a patent on that one QUICK remixfa!!!

posted on 04 Sep 2011, 10:59 2

25. remixfa (Posts: 13902; Member since: 19 Dec 2008)


apple already invented it :(

posted on 04 Sep 2011, 10:45

23. jbash (Posts: 339; Member since: 07 Feb 2011)


They have, and moto actually has one on Sprints iden network the i886. there are actually quite a bit of these basic phones in developing countries.

posted on 04 Sep 2011, 04:42 1

10. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


What have i been saying guys ???? : )
Just proves google will do their own phones, schmidt has confirmed it now !

posted on 04 Sep 2011, 05:33 1

11. snowgator (Posts: 3197; Member since: 19 Jan 2011)


Okay Pete: I did some copying from various sites (Wall Street Journal, Fierce Wireless, Mobelida News) to show your assumption that Motorola and Google will freeze out other manufacturers is just not shared. I know you have inside sources, and I DO NOT doubt you one bit you heard it from them. But, it just doesn't seem to be what a lot of other mobile experts think:

TBR believes Google's acquisition of Motorola Mobility will bring innovation to the mobile industry, as the company has done with Android and many other services. Google will run Motorola Mobility as a separate business which will remain an Android licensee, though integrating the innovative Google culture will spur creation of new, unique products and services.

--TBR analysts Kate Price, Ken Hyers and Ezra Gottheil



One difference between this and previous failures to license OS' while making hardware (such as Palm) is that Google makes no revenue on licensing Android, so that is not a direct revenue stream. But it must still weigh the profitability of its own substantial handset business without threatening other leading licensees such as HTC and Samsung."
--NPD Group analyst Ross Rubin

Google with its uber-popular operating system Android didn't need to own a handset manufacturer to be successful. It had already created pull-through demand by building a strong application market and end-user demand. Even if the Motorola Mobility unit of Google doesn't end up being highly profitable, owning a credible manufacturer where you can begin to incubate, pre-test, and implement new mobile-centric solutions is a good thing for Google. Google will now own a hardware vendor where its OS and applications can--in theory--be leading-edge. Some consumer will be willing to pay for those types of solutions."
--Analysys Mason analyst Steve Hilton


HTC welcomes the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem."
--Peter Chou, CEO of HTC

Samsung is excited by the news of the purchase of Mototrola, which demonstrates Google's deep commitment to defending Android, its partners, and the ecosystem which profits us all."
--J.K. Shin, president of Samsung Mobile

posted on 04 Sep 2011, 05:40

12. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


It doesn't matter what analysts say. Eric Schmidt has now said they will make their own phones, the analysts where wrong !
Now i have not said google will kick out Samsung and htc. I have been saying that when google starts making their own phones, everyone will be buying googles phones, leaving samsung and htc needing to sell other phones than android phones.

posted on 04 Sep 2011, 06:28 1

15. protozeloz (Posts: 5371; Member since: 16 Sep 2010)


They talked about their amazing products and making them available to many. But what could that mean? If you check Google's recent list if purchases they point at what I think could be Google's final plan. As you see they bought the company that invented the smallest smartphone and that company had the idea of making a device they could be switched to change its functionality, this reminds us of something else, the Atrix, so Android could become an OS that adapts to the dock is plugged in order to offer a different functionality from phone to tablet to computer to TV all this can be done now that they have Motorola without turning Android into a Motorola only OS. And will probably see mire Google TV devices being connected with Motorola. I've always said moto gives the wrong steps into the right direction

posted on 04 Sep 2011, 08:41 2

20. Jasonhunterx (Posts: 110; Member since: 20 Jul 2011)


That is the point of it it makes the other phone companies have to step there game up or they will lose to google because there updates are gonna be great

posted on 04 Sep 2011, 11:03 2

26. remixfa (Posts: 13902; Member since: 19 Dec 2008)


and everyone and their brother including google says you are wrong. your the only one that wants to believe it because if its true you think its good news for Bada. You have to ignore every fact and every track record to believe what you believe. Its a far stretch to say the least.


You have a horse in the race and thats why you are trying to convince people to bet your way. sorry, but Bada keeps coming in last, its not about to beat thoroughbreds named Android and iOS. Heck it cant even beat WP7.

posted on 04 Sep 2011, 12:55

32. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


Why are you all in denial ???

Google's Eric schmidt said "We did it for more than just patents"

Ahem, that only means one thing. They WILL make their own hardaware.

What is hard to understand about this, 2 + 2 = 4 you can't deny it !

And when it comes to bada you are in denial again.

bada has more market share than WP7, in fact, over 20 % more market share than WP7, that is a big figure percent wise, there is no denying it !

posted on 05 Sep 2011, 15:46

51. Mookie Wilsonovich (unregistered)


"Don't go to korea house on speedway they serve cat."

posted on 04 Sep 2011, 05:42

13. snowgator (Posts: 3197; Member since: 19 Jan 2011)


And- in the truth in advertising department- several analysts think this is a horrid deal for Google- that their lack of experience with hardware will cause this to be a resource drain and deter them from doing what they do best - the Android platform. Several also say this will push manufacturers to W7 and other platforms just out of FEAR - not due to anything Google has said or will do.

I actually think Samsungs relationship with W7 and their development of Bada is a GREAT strategy. That is why they will be #1 for quite a while. I just think time will show Google will dump Moto before they give up the open source OS.

Okay. I am done trying to look smart!! :-)

posted on 04 Sep 2011, 11:06 2

27. remixfa (Posts: 13902; Member since: 19 Dec 2008)


i agree in the fact that i think google will sell off moto if it becomes a threat to its android operational partners. Moto hasnt made money, its nothing but a drain on google at this moment and its only purpose is a shield.
will google try to turn the ship around and make moto a better company? absolutely. Will google jeapordize their hugely dominating android platform? very very doubtful.

posted on 04 Sep 2011, 11:34 2

30. protozeloz (Posts: 5371; Member since: 16 Sep 2010)


Google is not the type to rock a single boat, that's how they survive they will kill Motorola completely if it makes Samsung HTC and LG become completely loyal to them

posted on 05 Sep 2011, 05:36 1

41. jbannach (unregistered)


Android/Search/Market is not profitable!
Google wants some of the profits that Samsung and HTC are making!!!! They will only do enough to keep HTC/Samsung profitable and in the ecosystem. Why should Google be shut out of the majority of the profits from the biggest consumer areas in the forseeable future (smartphones and tablets). Would you be happy making $5 per phone when your biggest competitor Apple makes $300 per phone? Even Microsoft makes more money per Android phone than Google. I don't deny that Google still wants HTC and Samsung in the ecosystem but if you think they will let them make the majority of the profits off Android especially after it "had" to spent $12 billion of its own money to "defend" them...then you are in serious denial.
You don't spend $12 billion just to defend a mildly profitable business like Android. If you estimate Android makes 100 million a year (big if) you need 120 years to make back your money!!! You spend that much to get into the real big potential money making profit pool which is selling HW to billions..

posted on 05 Sep 2011, 05:59 1

43. jbannach (unregistered)


Has it also not occurred to you that since Google now makes the HW, it can fill the gap and actually make more money if a HTC or Samsungs jumps ship?
That is incentive enough for HTC and Samsung to stay.
Part of reason IOS is so profitable is you can only get it from ONE company.
Don't think Google is all that worried about pleasing HTC and Samsung when the equation becomes more sales of THEIR own HW sell equals bigger profits.

posted on 05 Sep 2011, 09:11

46. protozeloz (Posts: 5371; Member since: 16 Sep 2010)


you should know Motorola's purchase was not only smartphones. now with that said Google has its Google TV among other stuff on a market that's yet to be expanded, just in development time Motorola has saved them on their android @ home project and faster ways for them to get their Google TV project expanded like no other could is worth the money, as I said Motorola could mean More money for Google in other ways than just building smartphones

posted on 05 Sep 2011, 05:42

42. jbannach (unregistered)


You did not do a good job looking smart...think again...
Android/Search/Market is not that profitable!
Google wants some of the profits that Samsung and HTC are making!!!! They will only do enough to keep HTC/Samsung profitable and in the ecosystem. Why should Google be shut out of the majority of the profits from the biggest consumer areas in the forseeable future (smartphones and tablets). Would you be happy making $5 per phone when your biggest competitor Apple makes $300 per phone? Even Microsoft makes more money per Android phone than Google. I don't deny that Google still wants HTC and Samsung in the ecosystem but if you think they will let them make the majority of the profits off Android especially after it "had" to spent $12 billion of its own money to "defend" them...then you are in serious denial.
You don't spend $12 billion just to defend a mildly profitable business like Android. If you estimate Android makes 100 million a year (big if) you need 120 years to make back your money!!! You spend that much to get into the real big potential money making profit pool which is selling HW to billions..

posted on 05 Sep 2011, 06:51

44. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


Glad that there are at least some peopl here like jbannach whom understands that Google is not stupid in the head, and they want some profit from their purchase.

posted on 05 Sep 2011, 10:33

47. remixfa (Posts: 13902; Member since: 19 Dec 2008)


wow, if android search/market isnt profitable how did google become the giant company it is to day..


im pretty sure that was through SEARCH... lol

where do you people come from?!? :

posted on 04 Sep 2011, 06:42

17. som (Posts: 768; Member since: 10 Nov 2009)


Why is Apple filed lawsuits only Samsung?

posted on 04 Sep 2011, 06:55

18. ztedac (Posts: 69; Member since: 17 May 2010)


they want samsung to be a supplier only and not a competitor

samsung supplies apple's iphone materials

posted on 04 Sep 2011, 06:57

19. protozeloz (Posts: 5371; Member since: 16 Sep 2010)


Samsung is currently the top Android seller. They have made a great market campaign (compared with others sellers ) they have sexy and slim in mind. Also apple has sued HTC too

posted on 04 Sep 2011, 09:57 1

21. Tmachaveli (Posts: 425; Member since: 01 Apr 2011)


Pete you dont work for google so you dont know what they are going to do. This is a billion dollar company who's os is #1 in the world they are not dumb by amy means .it seems to me that you want android to fail.but hate to bust your bubble thats just not gonna happen

posted on 04 Sep 2011, 10:33 1

22. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


I know that Google is not dumb. that is exactly why they are going to make their own hardware.

By making their own hardware, Google are going to earn lots more money than they do now (at the moment, Google doesn't earn a cent on Android).

Why are you in denial ?

Eric Schmidt himself has now confirmed they are going to make their own hardware, there is no denying it now !

posted on 04 Sep 2011, 10:53 2

24. jbash (Posts: 339; Member since: 07 Feb 2011)


They dont make a cent off of android? Nobody invests billions of dollars in something and not make finacial gains(unless you are hp =P)

posted on 04 Sep 2011, 11:07 2

28. remixfa (Posts: 13902; Member since: 19 Dec 2008)


peter, u obviously know nothing about android. they make money off of every android device that has google apps/market installed. Android is free, those apps are not. They also make money off every app, advertisement, search, and everything else.
Moto is not a profitable company right now. Going into hardware will only drain them, not fluff their numbers.

posted on 04 Sep 2011, 11:47

31. protozeloz (Posts: 5371; Member since: 16 Sep 2010)


Peter Google makes money for every phone that ships the android market, Google makes money for every app that has Google's mobile add service, they make money for every app purchased on the android market.

now if you check Motorola, they have being loosing money now thanks to android they are loosing less money, the company seems to have the lowest reputation among all android manufacturers, so Google is going to upset its top dogs to rock on Motorola's ship? Google has Motorola not the other way around (like Nokia and Symbian) I see Google using Motorola More like a bridge to make things mote tidy but far from having them as their main.

posted on 04 Sep 2011, 13:00

33. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


"those apps are not"
Yeah, the developer gets the money from the apps. Where is google in this deal ?

Search ?

People search on their computers as well, Google is the leading search engine and they would make just as much money from search on computers, because they are the leaders in that area. Has nothing to do with earning money with Android.

Let's face it. Google will make much more money by making their own phones with android, and that is exactly what they are doing.

Don't be in denial, that's just stupid !

posted on 04 Sep 2011, 16:19

34. protozeloz (Posts: 5371; Member since: 16 Sep 2010)


-Google gets paid 25-30% of the final cost of every copy the seller sells inside the android market

-Google's deal with their services because is their way to make money according to studies people are searching more and more on smartphone, a place where Google presence can be undone, its why they decided to go to the mobile market, Microsoft and bing pushing themselves into the customers eyes by using their defaulted services could simply wipe Google from both the mobile space and the PC space, its why they decided to make an OS, its why they decided to open source it and base it on open source materials so they could expand.

Now what you don't understand on the equation is Motorola's status, if Google would have bought HTC or Samsung then the answer is obvious to the eyes, yet the purchase is Motorola, the company that has being loosing money for quite some time, yes Google will look forward making good phones from Motorola but they wont give Samsung and HTC the cold shoulder treat, and with that Samsung And HTC could just make more competitive devices

also count that apple is not suing Google but rather manufacturers, if Googlerola where to make a device to strongly compete with the iPhone it might end up facing the same situation as Samsung, does Google want their top dog device to be banned? Google can simply sit and watch 4 flash grip devices with android competing against the iPhone without breaking too much of a sweat witch its not the same if they where to seriously upset the other manufacturers and become an hardware vendor

posted on 05 Sep 2011, 03:11

37. huhu (unregistered)


brilliant answer :)

posted on 04 Sep 2011, 19:42

35. remixfa (Posts: 13902; Member since: 19 Dec 2008)


peter, the only one in denial is you. And your comments prove that you actually have NO idea how google makes its money, nor do you seem to care enough to listen or research it yourself. Your opinion on google is not based in some reality but in some Bada fueled fantasy alternate universe where google operates the same was as apple and even samsung. Which is entirely UNTRUE.

Google makes money off of every android, ios, wp7,bada, webOS, computer, basic phone with search capability, tablet, netbook, interactive advertisement, search query, and nearly anything you can think of. Android is nothing more than a serving tray for google search and advertisements. They also make money off every phone with google market (manufacturers pay to put that on there), every app sold, so on and so forth.

What they DONT make money on is HARDWARE. And going into HARDWARE jeopardizes all of their partnerships with many of the things they do.

Get off your crazy sinking bada boat and do some research.

posted on 05 Sep 2011, 04:17

39. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


I'm not going to spend more of my time arguing such a simple equation with you.
2 + 2 = 4, not 5.

Everyone knows that, and there is no point in arguing with someone who still doesn't understand that.

posted on 05 Sep 2011, 05:09 1

40. jbannach (unregistered)


Google does not make that much money off android.
Google does not disclose the amount (probably because it is not that much for a company with 40% smartphone OS market share) and analyst have even questioned if Android is profitable. They clearly do not make anywhere near what Apple makes. The fact of the matter is that in order to make money in smartphones you have to sell the hardware (the search and eco system is not enough), And if you don't think Google sees the profit Samsung and HTC are making and are not saying to themselves that they want some of that because after all Google is largely responsible for their success, then you are in denial. Why should Google be left out of the majority of the profits that will come from the largest consumer categories in our forseeable future (smartphones and tablets). Sorry Google is in it to make EVEN more money...Eric Schmidt said it! Stop denying this is their true intention. They will only do enough to keep HTC and Samsung in the ecosystem and still profitable. They will go for the homeruns with THEIR OWN HARDWARE division whose performance and growth is now tied to their stock.

posted on 05 Sep 2011, 06:54

45. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


Agree !!!

posted on 05 Sep 2011, 10:36

49. remixfa (Posts: 13902; Member since: 19 Dec 2008)


of course you agree. you have no idea what your talking about.


google isnt a hardware company. it is a software company. it makes money on every android phone sold, so yea its profitable. i really dont understand why this concept is so hard for you guys to grasp.

posted on 05 Sep 2011, 12:15

50. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


"google isnt a hardware company."
well, they have just become one : )
Google makes very, very little money on sold android phones, not nearly as much as they need to be profitable. That's not hard to understand.

posted on 05 Sep 2011, 10:35

48. remixfa (Posts: 13902; Member since: 19 Dec 2008)


"those apps" i referred to were GOOGLE APPS.. Search, Market, Gmail, ect. Those GOOGLE apps that come on the phones ARE NOT FREE. Manufacturers pay liscencing to get those apps on every android phone.

and yes apple, google, MS, bb, bada, and the rest all take a percentage of each app sold for themselves.

posted on 04 Sep 2011, 11:28 1

29. roldefol (Posts: 2858; Member since: 28 Jan 2011)


I see the Google-Moto purchase as Google turning itself into a 21st century version of Microsoft-IBM. By the 1990s we had tons of PC "compatibles" flooding the market, but IBM still sold theirs as the model. Meanwhile companies like Compaq, HP, Dell, Gateway 2000, Packard Bell, etc. were the volume sellers.

As long as Google keeps giving its software away to the Samsung and HTC - and why wouldn't they, given the profits they can make off of advertising and app sales? - Google/Moto phones can coexist with Samsung, HTC and LG Android phones.

The open question is whether Google will ever put the Nexus name on an HTC or Samsung phone.

posted on 04 Sep 2011, 19:45

36. remixfa (Posts: 13902; Member since: 19 Dec 2008)


Both the nexus S and the Nexus Prime are samsung, and the Nexus 1 was HTC.. I think you mean "will LG or Moto ever get to make a nexus phone"..

and the answer is simple. All manufacturers present their design ideas to google for the next nexus. Google picks the best idea and goes with it. If they want to be a nexus, they need to have better ideas than samsung and HTC... which seems pretty hard to do right now.

posted on 05 Sep 2011, 03:45

38. android_hitman (Posts: 591; Member since: 07 Jul 2010)


i hope that they will make apple kneel .. it's about time someone step up to the rotten apple

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