THE TRUTH ABOUT THE GOOGLE-MOTOROLA DEAL: Google Had To Do It--And It Could End Up Being A Disaster (GOOG)
How do HTC and Samsung, two of the leading Android-based smartphone makers, think about the fact that their "partner" Google is now competing directly with them for hardware sales?Second, is this an acknowledgment that, in smartphones, Apple's integrated hardware-software solution is superior to the PC model of a common software platform crossing all hardware providers?Third, how is Microsoft feeling? Is this a great deal for them...or confirmation that they're screwed?Fourth, is this deal purely defensive, as it appears to be, or does Google actually have a positive reason for doing it?Fifth, how will Google investors feel about the company entering an entirely different kind of business, one that could destroy its partnerships (and margins) in one of its most important new business lines?
Bottom line, a bold move by Google. But one that raises a lot more questions and challenges than answers.