Google is looking to its new $12.5 billion Motorola Mobility acquisition to create innovative new devices. But they will need to do so without scaring away Android’s 55 manufacturers.
The challenge for Android is that more companies will develop so-called “forked” versions like Amazon. Each will have features to differentiate them that may be at odds with Google itself. Samsung, for example, is bringing out its own advertising network that will compete with Google.
Moreover, Google will be challenged to maintain its traditional high margins in a hardware business where companies are barely profitable. Motorola Mobility, in fact, has been losing money. Google may be forced to sell off parts of the company such as the cable set-top box business. And there are rumors that the handset business is also for sale.
But Google denies that rumor. “And that may be the scariest part of all for Google’s investors. The company really believes it can be all things to all people,” reports the Wall Street Journal.
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