Since Google in May 2012, cost 12 billion dollars (about RMB 75 billion) acquisition in the Motorola: trend of development and has been concerned. 9 months after the acquisition, Motorola while gradually recovers, but for Google continues to be dragged down a considerable profit. In the first quarter of 2013, for Google, this problem will become more serious.
In December last year, Google owned family business unit, Motorola set-top boxes, routers, and other non-manufacturing sectors sigh of relief packages to the hardware sector US $ 2.35 billion ($ 14.6 billion yuan) sell, laid off thousands of employees. This means that Google had to release this year and may not include Motorola, two sets of results. Now for Google, Motorola can be regarded as a persistent problem. Google’s mobile phone and tablet computer sector this quarter announced a loss of $ 353 million (approximately RMB 2.2 billion yuan), while $ 523 million in the previous quarter (about RMB 3.2 billion) compared to some improvements, but overall, Motorola brought about by loss amount is also an upward trend. Because in the same period last year, Motorola’s mobile sector losses only US $ 70 million (about 440 million yuan).
In shareholder conference call, Larry Page, Google’s Chief Executive had said: “Google should start with more timely, early acquisition of Motorola. While Google’s mobile phone but there are still a number of areas where improvements need to be, one of the largest number to battery life problems. Really perfect phone, consumers always worry should not be allowed when the phone in the hands of perhaps would be discharged. “This stance of Larry Page, is another confirmed in December last year the outgoing Google and Motorola will launch one with flexible display, made of ceramic shell, with gesture recognition features, more durable battery life more longer code rumours of mysterious phone x Phone.
Chidf Financial pointed out that Google’s Chief Financial Officer, Google hasn’t found the right opportunity and Motorola is fine this hot potato. Google took over Motorola’s time now has more than 6 months, but Google needs at least a quarter of the time to really find an effective response.
Although Motorola RAZR Series handsets (including the RAZR and RAZR m HD) after the acquisition as Google’s first mobile phone achieved good results, but it’s not Google really want the ultimate form of Motorola production. So Google in the future if the continue to develop mobile phone products, does not rely entirely on Motorola for the production. Although Motorola has been working to reinvent their product lines, for both Google and Motorola, however, still needs a lot of time.
Google CFO Pichette said, while Motorola lost $ 353 million this quarter, but Google remains very concerned about Motorola’s profitability in the future, because after all, Google is a commercial company, for sustained a loss on the sale is clearly not Google wants. At this stage, for losses from Motorola, Google’s Android system have always brought advertising income and other subsidies. This status will be maintained up to Motorola to find genuine product profit model, Pichette analysts warn the outside world not to Motorola have too high expectations in the short term because as Motorola’s stand, it will be a long process. For Motorola, Google is now, and will continue to support the production of new products and new technologies, not only is the company’s business practices, in a way, this is Google in acquiring Motorola’s responsibility.