Saturday, March 2, 2013

Google says Motorola won’t Wow you anytime soon

Google says Motorola won’t Wow you anytime soon

Well this is really unorthodox, usually when you acquire a company (say Motorola), you try your level best to promote whatever they make. This is however not the case for Google, as the company’s Chief Financial Officer recently told a room full of analysts seated at the Morgan Stanley Technology Conference that the some of the upcoming Motorola phone are just going to be OK. Remember this is coming from the guy how controls all of the Google’s money so there is some hefty credence to this comment. While he didn’t exactly say that the next phones will be duds, the meaning however was quite clear.

This may sound like Google is shooting its own foot; well this is technically exactly that. While Google acquired Motorola back in May 2012, the company still had some devices in the works. According to the agreement, Google was to leave them alone and let Motorola release them. Here is the official statement:

“We’ve inherited 18 months of pipeline that we actually have to drain right now, while we’re actually building the next wave of innovation and product lines. We have to go through this transition. These are not easy transitions.”

While it is logical to disengage the contracts and start over, this will be harmful to the largest customers Motorola has: the carriers. Believe it or not Motorola phones are quite favorite of carriers especially U.S ones. Terminating the phones already in the making will damage the relationship between the tech giant and the carriers. This will come and bite Google back in the future, that is why the phones in the pipeline have to go. But saying that the next phones will be boring and non-impressive, well that is also going to affect sales of the smartphones. If Motorola sticks large batteries on small smartphones, we think it’s going to be just fine.

Source: The Verge

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