Big Rumour: Google to sell its hardware stake in Motorola Mobility to Huawei

Daniel Bader

April 11, 2012 8:20 pm


When Google purchased Motorola Mobility for $12.5 billion last year, a lot of people were skeptical of its eventual success. But Google’s idea of success in the mobile world is not necessarily making money, at least not in the short-term, but adding users to its growing market share. That, in contrast to the limited profit made so far on Android, has been a rousing success. Android is used by more than half the smartphone users across the world, and it is activating nearly a million handsets a day.

But its purchase of Motorola Mobility hasn’t actually led to any serious innovation. The idea has been thrown around that Google purchased the company only for its 17,000 patents and not necessarily to directly create new handsets. Andy Rubin, Android’s progenitor and spokesperson, has said that there will literally be a firewall between the two companies, making it impossible for Motorola to gain advantage over its rivals. Considering the company hasn’t released a high-profile smartphone since the Motorola RAZR, this appears to be true.

But the Wall Street Journal is reporting that Google has been shopping Motorola’s handset manufacturing division around, and has been in talks with Huawei to shake off the burden of a non-performing company: Motorola only owns 4% of the market, and is in no position to make huge gains in the wake of Samsung’s success, HTC’s comeback and Sony’s re-invigorated attitude. Not to mention Huawei itself, which is poised to make a big splash in North America with its Ascend line of phones.

There is no specific price being speculated for the sale, and Google is denying it, saying that they are building up Motorola as an independent company. As mobile search increases in importance over the next few years, it only makes sense that Google would focus on Android as an overall asset; selling off Motorola’s hardware division while keeping its former patents would help it get there.

Source: WSJ
Via: IntoMobile

  • Domingo

    Dumb move. They should find some talent and try to fix things there first. Unless they have something up their sleeve and plan to purchase another hardware company.

    • CSI

      “They should find some talent and try to fix things there first”

      Easier said than done. Motorola has been trying that since the first RAZR…..

  • skullan

    Next step, RIM?

  • SAM

    THIS IS GOOD FOR SAMMIE!!
    GO SAMMIE!!

  • samSUCK

    how did sammie die of drinking milk?….
    The cow sat on him.

  • john Wu

    Motowei. Just a perfect name for it to beat the s**t of apple

  • Alexander the Great Perrier

    I think Wind should get Huawei phones because Wind is the best!

    Also, I’m a know-it-all teen who hasn’t hit puberty yet.

  • Alex Perrier

    Canadians had few Motorola choices, and the prices as well as the offerings weren’t very competitive. Then again, our phone selection was limited. i believe Google should keep Motorola, but only release one to three smartphones per year. Perhaps start with two Motorola phones comparable to the Nexus S and the Galaxy Nexus. In my humble opinion, the brand name Motorola should stay, but it will need some extensive refreshing if they want to sell new products.

  • Tom

    “But its purchase of Motorola Mobility hasn’t actually led to any serious innovation.”

    Huh? How long has it been? Actually, I didn’t even realize that the purchase had been finalized.

    • cybik

      it’s not finalized yet :P

    • Netguru

      Tom, exactly correct. What is truly appalling here is that Bader has taken one sentence from the WSJ article out of context and distorted it by claiming “Big Rumour: Google to sell its hardware stake in Motorola Mobility to Huawei” Utter BS.

  • SeriouslyYo

    This does not make a lot of sense. It has been reported many times that they are building “secret” hardware testing labs across its campus. They want to build their own hardware. This is very clear.

  • skullan

    Yep, I could see RIM being purchased by a combination of Google and Microsoft.

    Patents
    Established Enterprise.
    Services such as their BIS/BES

    Chop the hardware maker side off.
    Review and potentially sell off QNX.

    Canadian government already saying they are not blocking foreign purchasers.

    You can thumbs down this all you want, but by getting rid of the hardware side of Motorola they show that they got what they wanted.

  • Jon Stewart

    Finally. All of the most terribly made phones condensed into one neat little package!

  • Mark

    This rumor is interesting and would be welcomed by the other manufacturers as they wouldn’t be as scared about Google building their own devices moving forward and would have to contract one of them to do so (Asus and the Google Tablet). If it is true, it may seem that Google doesn’t see the benefit of having Moto as they might feel other manufacturers build quality is better than what they can do through Moto themselves which brings up why buy them in the 1st place unless it was for patents only.

    On a side note, MS should buy RIM and then they have instant access to BIS/BES which is what they want anyways!!

  • Zee

    So that what happened, buy and destroy it. Nothing new, they did it before and simply kept their tradition. Just for moment I thought they Will do something with this purchase and here we go they may kill this too.

  • Rodrigo

    December 2, 2011 at 12:10 pmWith Android users now out numbering the iOS porlftam do you feel the Android porlftam needs to catch up? I like Android but I don’t find the same quality of apps in the Android Market as I found in the iOS. What do you think about this subject? Reply