Eric Schmidt: We bought Motorola for more than patents

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...
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49 Comments

19. protozeloz

Posts: 5396; Member since: Sep 16, 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

21. Tmachaveli

Posts: 425; Member since: Apr 01, 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

22. PeterIfromsweden

Posts: 1230; Member since: Aug 03, 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 !

24. jbash

Posts: 345; Member since: Feb 07, 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)

28. remixfa

Posts: 14605; Member since: Dec 19, 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.

31. protozeloz

Posts: 5396; Member since: Sep 16, 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.

33. PeterIfromsweden

Posts: 1230; Member since: Aug 03, 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 !

34. protozeloz

Posts: 5396; Member since: Sep 16, 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

37. huhu unregistered

brilliant answer :)

35. remixfa

Posts: 14605; Member since: Dec 19, 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.

39. PeterIfromsweden

Posts: 1230; Member since: Aug 03, 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.

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.

45. PeterIfromsweden

Posts: 1230; Member since: Aug 03, 2011

Agree !!!

49. remixfa

Posts: 14605; Member since: Dec 19, 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.

50. PeterIfromsweden

Posts: 1230; Member since: Aug 03, 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.

48. remixfa

Posts: 14605; Member since: Dec 19, 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.

29. roldefol

Posts: 4744; Member since: Jan 28, 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.

36. remixfa

Posts: 14605; Member since: Dec 19, 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.

38. android_hitman unregistered

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