We've seen how Google stepped into the mobile market with its physical devices called Nexus One. Because the popularity of the smartphone was less than what Google had anticipated, the production of Nexus devices stopped. This time, Google suddenly announced that the company will acquire Motorola for $12.5 billion.
While the amount can be terrific, it is the first time Google is acquiring a company that actually produces physical devices on the market. However, most of Motorola's latest handsets are already running Google's Android operating system. Therefore, Google literally doesn't have to do much with it.
However, Google said the acquisition will supercharge the Android ecosystem. But we doubt if this might cause a bad impact on other companies' smartphones that run Android. Because Google will pay more attention to developing Motorola phones and eventually become a rival to other companies like Samsung, and other companies might just not be satisfied using an Operating system created by their rival.
Although Google said Android and Motorola will continue to run as separate businesses, we are expecting some big effect. Who knows other companies may even embrace the new smartphone OS being developed by the Mozilla Foundation.