Google Acquisition of Motorola Mobility Increasingly Hurting Bottom line


Google acquired Motorola Mobility to gain access of mobility patent as well as to control mobility ecosystems. For the last two years Google worked hard to develop premium class Smartphone coupled with closely knitted Google product to position itself against Apple. To some extent Google succeeded to release innovative Smartphone branded under Motorola and achieve good reviews. Post recent quarterly result, it is evident that Google vision of achieving out of proposition success with Motorola series of device is not working. Google posted $998 million revenue from Mobility device business unit and posted operating loss of $342 million which is way ahead of $199 million loss posted during the same quarter last year. The heavy investment in the mobility device unit impacted Google bottom line as profit came down from $3.55 Billion to $3.23 Billion. It would be interesting to obverse Google strategy to convert loss making into dominating and profitable unit. Google may decide to go low with Motorola strategy as any aggressive push may push many collaborators on Mobile OS side out of the Google block

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