Google Motorola Deal

            With its $12.5 billion acquisition of Motorola Mobility, GOOGLE has shown that it is ready to take its investment in mobile to the next level .After killing big giant Nokia in only 2 year It’s important to remember that Motorola Mobility does more than just make smartphones

            

            Android fanboys, that’s not going to happen. Turns out Google isn't really buying Motorola Mobility for its handsets. Instead, what Google really wants is the company's massive cache of 17,000 patents (and 7,000 more pending), analysts say.

        

            The distinction is important because if the Google-Motorola deal is approved by regulators it will shake up the hierarchy of mobile computing heavyweights, said Michael Morgan, senior analyst for mobile devices at ABI Research.

“People are starting to realize that Google could become the Microsoft of the mobile world,” Morgan said.

Nokia and RIM Ripe for the Picking

           Of course, other players in the device space may feel the most immediate impact from the Google-Motorola deal.

           Shares in Nokia and RIM jumped in the wake of the Google-Motorola announcement, as the market saw beleaguered mobile giants as ripe acquisition targets for companies like Microsoft. Nokia has already tied its future fortunes to Microsoft’s Windows Phone ship, why not just complete the deal and be done with it?

           Assuming the Google-Motorola deal sails through without any regulatory hurdles, it could open to door for an acquisition of either Nokia or RIM.

         

           If Google is to acquire a mobile-telephone company, why not a film or television studio? Why not become a book publisher? Content companies are already suspicious of the intentions of Netflix and Amazon. After newspapers and book publishers and Hollywood companies threatened and filed lawsuits against Google, the Mountain View company worked strenuously to settle the cases and to demonstrate that its platform was a neutral Switzerland. This morning’s announcement will instill fear that Google is a combatant.

           Google might encroach more seriously on the nascent tablet market, where Apple’s iPad still has a head start on other manufacturers.

        In other words, the future of smartphones and tablets will look a lot like the desktop computer market that it’s rapidly supplementing, if not replacing: Apple with a small but consistent slice of the market on the high end of the price spectrum, and a something-for-everyone panoply of Android-based devices at all levels of price and functionality beneath it.

       

        Whether the market is big enough for the current market’s other players remains to be seen.