2012-11-03

Google can not make money out of handsets

Google is doing well in the mobile and as a whole. But the hardware manufacturing arm, former independent Motorola, is still in trouble. No money can make Motorola profitable. It is not possible for Moto to escape from the reality, it is permanently lost. It will be interesting to see how long Google will keep its loss-making mobile maker in tow. From Google's point of view, it may be strategically wise to keep Motorola afloat, because without Moto Android would be all-in with Samsung and a bunch of small manufacturers.

For Google, the current situation must be frustating. Samsung makes money by selling Android phones. Google makes money by delivering advertisements to these Samsung made-phones. And  some of that money goes to loss-making Motorola. Apparently it woud be better for Google to shut down Motorola and keep the money flowing in from advertisements. But for some reason, Moto is still in the business.

Ei kommentteja:

Lähetä kommentti