August 18, 2011 12:14
Google's US$12.5 billion takeover of Motorola Mobility not only allows the search giant to obtain a portfolio of more than 17,000 patents but also gives it the capability to roll out cheap-and-cheerful smartphones within a year or two.
U.S. market analyst Treifs said Tuesday that about 66 percent of Google's profit comes from Internet search advertising, so the firm could afford to sell Android smartphones at much lower prices in the U.S. market, given that Google's main objective is to put smartphones into as many hands as possible. But Treifs added that strategy is only likely to be implemented in the U.S. market to put pressure on Apple.
Meanwhile, investors speculate that the Google-Motorola deal might prompt other major takeover deals, with software giant Microsoft thought to be keen on acquiring Nokia and Canada's Research In Motion. Korean handset makers are keeping a close eye on the major shifts in the global IT industry.
Samsung Electronics chairman Lee Kun-hee has called on his company to focus on software competitiveness and look into possible acquisitions. Samsung relies heavily on Google for its smartphones, with roughly 80 percent of its mobile devices using the Android operating system.
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