Googmoto: The Pessimist’s View

By  |  Monday, August 15, 2011 at 3:56 pm

The Business Insider’s Henry Blodget thinks the Google-Motorola deal is bold but troubling:

Yes, there’s a chance that Google could pull off a miracle here and transform the Motorola Mobility business into a direct competitor of Apple’s–in which Google gets not only Android distribution, but super-fat iPhone-like profit margins to boot.

But doing that will be super-challenging. Motorola’s current hardware team has displayed none of the magic that Apple’s has. And the more Google tries to mimic that magic, the more Google’s other Android partners will likely rebel against Google’s competitive threat.

 

 
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4 Comments For This Post

  1. peter evans Says:
    August 16th, 2011 at 2:04 am

    That cracks me up. Google will be out of the handset business within 18 months tops, once the senior management gets a good look at how manufacturing works and how margins are made.

    Also, Google will freak when Samsung/HTC/etc threaten to walk. It'll be hilarious…

  2. Mark Hernandez Says:
    August 16th, 2011 at 4:59 am

    Quoting Henry Blodget? Hmmmm. (shaking head) You can do better than that. Really. I can think of a couple people who don't think things will turn out well with this deal whose reputations are actually impeccable.

  3. Harry McCracken Says:
    August 16th, 2011 at 1:04 pm

    I don’t always agree with everything in posts I link to. I’m not rendering a verdict on the people I quote. I just point out stuff I found interesting–and that was the case here.

  4. Mark Hernandez Says:
    August 16th, 2011 at 2:23 pm

    Oh, okay. I see. Fair enough. And may I offer this up in addition…
    http://blogs.hbr.org/cs/2011/08/googles_strategic…

    Thanks Harry.