Could Google's Motorola Buy To Fend Off Microsoft... Actually Drive More Business To Microsoft?
from the the-perverted-economics-of-patents dept
Of course, the big question that many raised when Google did this deal was whether it would actually push some handset makers away from Android, out of a fear of competing with their own supplier. While big Android players like HTC quickly downplayed that risk, insisting that they were committed to Android, at least some are speaking out about being less willing to bet on Android, and how it might even drive them to look more closely at Microsoft's Windows Phone operating system.
Let's unpack this for a second, because it begins to show just how ridiculous this overall situation is:
- Microsoft, thanks to patents, makes more money from Android phones.
- In order to fend off patent threats, Google buys Motorola to get its patents.
- In doing so, handset makers scared of competing with Google, start looking at Microsoft as a partner.
- The end result: Microsoft may get more handset partners, but less money, since Android is a pure licensing profit center.