Why Motorola will not be the exclusive Android manufacturer

After acquiring Motorola's mobile division for a whopping $12.5 bn in cash, Google has become subject of discussion once again, but for another reason. Gene Munster, the famous analyst at Piper Jaffray (also known for his Apple-biased statements in past) has claimed that Google's buying of Motorola will lead to Android's demise.

But as always this statement from him has come with its share of terms and conditions. As expected the statement has managed to grab quite a few eyeballs. But is it really possible?? Let’s contemplate.

For Android's demise, Google will have to make Motorola its exclusive manufacturer i.e., no more hardware supplies from Samsung, HTC or for that matter, any other brand. Now that looks a bleak possibility.

However, if this phenomenon indeed occurs, Android's market share will nosedive and other OS will fill the gap (another possibility, stated strictly in words of Munster). Needless to say, revenue losses will soon follow. Originally, Google wants Android's omnipresence since that will directly benefit its Google ads prospects.

After discussing the entire point, the conclusion seems very logical and obvious. For Google, the Motorola mobile division acquisition is nothing but purchase of patents. And while it may retain the patent portfolio, there is strong buzz that it may sell the hardware businesses. However, chances of Google operating it as a separate mobile division are also bright. If this goes on, there is a large possibility that there could be soft influence on Motorola.

Most probably, its role might get reduced to stock Android-only manufacturer. Who knows this influence could lead to Google expanding its footprint in the form of GoogleTV devices and others, a domain where Motorola currently rules.