Google buys Hardware company for $12.5 Billion

Posted by – August 16, 2011

Here are some numbers according to Josh Pritchard, posted on Quora about a week before this acquisition was announced:

–Motorola actually has ~$3.2B in cash (~$170M are “cash deposits”), with $200M more coming from Motorola Solutions, per the terms of the separation.
–They have $2.4B in deferred tax assets, that Google presumably plans to use (the media seems to be completely missing this one).

So, if you net the cash and tax assets, it’s more like ~$7B that Google is paying for the operating businesses and the patents.

Motorola Mobility has $6.2 Billion in assets (buildings and other stuff?) according to Wikipedia. Google gets 19 thousand new employees (up from 29 thousand current Google employees, a 65% jump in employee count).

Of course, what everyone is talking about are those 17 thousand patents and 7 thousand pending patents that Motorola Mobility has. Consider Motorola is a 80 year old company. Their patents most likely include many of the interesting Hardware Patents, I’m not a lawyer, but I am pretty sure strong Hardware Patents are worth much more than bogus software patents. This means Android, Chrome OS, Google TV can stay free and open source forever. Apple and Microsoft have to drop all their bogus lawsuits against Android companies immediately. Google now has the patent on the mobile phone, the Apple iPhone can be illegal tomorrow if Google wants it to be.

What do I think Google is going to do:

1. Ask the genius team behind the Motorola Atrix to join the Android team to make a platform that combines Ice Cream Sandwich, Google TV and Chrome OS into the ultimate ARM Powered device. Provide that solution as an all-in-one standard for the Android ecosystem and not just make it one product.

2. Interview any of the other 19 thousand employees at Motorola Mobility, ask who wants to work within Android, within Google or remain within Motorola Mobility and to do what. They can invent some genius interview process so somehow everyone gets what they want and what they deserve.

3. Maybe Samsung, HTC, Sony-Ericsson or simply the stock market are later offered to buy back the Motorola Mobility Hardware division without the patents but with free unlimited licence to use any of the patents on Android devices. In 6 months, if the stock market has somewhat recovered, Google may get all their money back for that.

4. Or Google can find use in owning Motorola, perhaps ask Motorola to design hardware such as Cheap $50 Android phones to bring Android to all people in the developing world, special focus on Brazil, Russia, India, China (potentially 1-2 Billion Android phones can be sold there in 1-2 years), Google can ask Motorola design $50 ARM Powered Google TV enabled Set-top-boxes that all consumers and all Pay-TV providers are going to use.

5. Maybe Android is mature enough (owning more than 80% of the smart phone market by the end of the year), Google may want to use Motorola to launch White Spaces networks worldwide for free wireless broadband for all. $99 Android phones unlocked that include unlimited free Google Voice, unlimited free wireless broadband in every city all over the world. White Spaces are unstoppable. Maybe this is the time. They can bundle a Motorola router with the phone, you plug it to your home ADSL/Cable/Fiber to expand that White Spaces network in your neighborhood.

  • Jamesanse

    “Apple and Microsoft have to drop all their bogus lawsuits against Android companies immediately. Google now has the patent on the mobile phone, the Apple iPhone can be illegal tomorrow if Google wants it to be.” – Why didnt Motorola do it 5 years ago when they were still dominant? Because they cant, just like Motorola cant take out Nokia and any other cell phone makers.

    “Or Google can find use in owning Motorola, perhaps ask Motorola to design hardware such as Cheap $50 Android phones to bring Android to all people in the developing world, special focus on Brazil, Russia, India, China (potentially 1-2 Billion Android phones can be sold there in 1-2 years), Google can ask Motorola design $50 ARM Powered Google TV enabled Set-top-boxes that all consumers and all Pay-TV providers are going to use.” –  now that is just a retarded comment….if they can truly make a 50 dollar smart phone they would have bought Google already, not the other way around..Just so you know, Android has already taken off in most of Asia including China, manufactured by local phone makers…please do some background research before posting..Please think a bit before you post..

  • Maventwo

    This is great news!

    Hopefully will Motorola Mobility under Google ownership make Android Smartphones and tablet pc more diversified in price and make it easier to market new radiostandards like NFC and WiGi Alliance high communication bitrate.

    Now Google can do that Nokia seems not to be able to do, turn the totally Smartphone market to be dominant by a company with altruistic mind of making the world to a better place with more use of Open source under royalty free licens code like Google thoughts about webRTC.

  • Jamesanse

    not to mention that Apple has also entered into an agreement to buy Nortel..along with its 7000 patents.. the only thing Apple needs to worry about is what to do with all the cash iphone 5 /ipad3 will generate later this year

  • Maventwo

    With baseband DSP integrated in cpu by Qualcomm Snapdragon ARM licens and with the development of new cheaper display tech in larger volymes, maybe Google some years ahead pull forward cheaper Samrtphones for developing world.

    Baseband DSP for processing many types of radiostandards in block in cpu with ARM processor IP the world will see processors with both higher signal speed and cheaper than Intel processors.

  • http://ARMdevices.net/ Charbax

    1. Motorola has defensive lawsuits against Apple and Microsoft exactly to destroy them for breaking hardware patents. Google can enforce those against Apple and Microsoft not only vs Motorola but also vs any other Android manufacturer. Instantly HTC, Samsung, Sony-Ericsson, LG, Huawei, ZTE, etc etc can all feel much more confortable overnight. Basically they can all use Motorola’s huge patent portfolio to destroy any attempt by Apple at blocking them.

    2. Nokia is obviously dying, they dominated smart phone sales to the developing world especially BRIC countries Brazil, Russia, India, China, now Samsung is taking over most of Nokia’s sales in those countries, but Google can now make sure to focus Motorola on also stealing the remaining of Nokia’s market share in those countries by simply making sure there are some awesome sub-$50 Android phones sold there by Motorola, they can achieve this as soon as before this Christmas thanks to the newest cheap ARM Processors for cheap smartphones. Apple has obviously 0% market share in those countries, nobody in those developing countries cares to pay $600 for an iPhone.

  • http://ARMdevices.net/ Charbax

    The Nortel patents are worthless vs the Motorola patents. Hardware patents are worth 1000x more than bogus software patents.

    Apple knows it is loosing sales to Android faster and faster every day. That is the only reason they try stupidly to forbid the sales of one of the best Android tablet in Europe, Australia. Apple is absolutely desperate, they are shaking.

    Do you want to understand why Apple is so desperate?

    Today Apple stock is worth $352 Billion

    Tomorrow it could be worth $100 Billion (much much more reasonable as Google is worth $174 Billion, Microsoft is worth $212 Billion)

    That would mean a loss of value overnight of $252 Billion dollars, the biggest fastest loss of fortune for a corporation in human history.

    How? Investors can easily realize it makes no sense to value a company so high that makes 65% if their profits and revenues from the quickly out-competed and unoriginal iPhone.

  • Winston

    I think this is quite a bit about WHITE SPACE utilization my friend and that is a HUGE development.  Both Google and Motorola are big players on that topic and Motorola has the RF engineering capabilities _in spades_ to make it happen.  I think everyone is entirely missing the point by focusing on the hopefully soon to be obsolete, hugely overpriced cell phone services and their rip-off rates cell phone providers.  Heck, even the apparently tech clueless idiots at S&P downgraded Google from a buy to a sell based entirely upon the cell phone issue alone, not even mentioning White Spaces.

    ArmDevices should have been the first to clue in on this considering the column that was posted here not long ago.  Here’s one from a year ago:

    “WiFi On Steroids” Is A Go. Now Google (Or Someone) Just Has To Build It. Please Do. Fast.

    http://techcrunch.com/2010/09/23/wifi-white-space/

    And one from 1 Aug 2011:

    IEEE publishes standard for networks using “white spaces”

    http://broadcastengineering.com/news/ieee-publishes-standard-08012011/

  • http://ARMdevices.net/ Charbax

    Yup that would be awesome.

    But carriers hate being disrupted and I don’t know if now is the right time for Google to promote carrier-free global wireless broadband. Hopefully they can just add it to phones just as they have WiFi and carriers aren’t going to make an anti-Android war about it.

  • Winston

    I agree.  It’ll be an added capability at first, but I look forward to cell service eventually costing what it should – virtually nothing.

  • http://twitter.com/lefortjulien Julien LEFORT

    Now they need to buy an electronic component maker to have their own processor (G1?)
    NXP could be a target (as they develop the NFC), and are owned by a edge found.
    Or Freescale (formerly known as… Motorola!)

  • Anonymous

    I guess many of you are clear on how patents work nor understand the significance of certain patents.

    MMI’s patents are “FRAND” patents. FRAND patents are patents that are so ubiquitous, the grantee has to license them due to the fact
    everyone is licensing them. With FRAND patents, you can not discriminate your grantees.

    AAPL’s patents are “essential” patents. Essential patents are granted to protect the patent holder exclusive rights.
    Because FRAND patents have already been granted, they cannot revoke them or decide to jack up the price.
    Hence, MMI’s patent portfolio isn’t strong enough to prevent MSFT and APPL from lawsuits earlier this year.
    Apple already licenses cellular patents from Motorola and the likes. Motorola cannot revoke those existing obligations.
    The difference here is Apple does not to retort with an obligation to cross license their multi-touch patents as a favor back to MMI.

    Google FRAND patents. This whole notion of Google revoking existing patents and sending back iOS back to the stone age is ridiculous.

  • http://ARMdevices.net/ Charbax

    You are just making stuff up. You did not read through Motorola’s 17 thousand patents, you did not read through Motorola’s ongoing lawsuits against Apple and Microsoft. Hardware patents are worth 1000x more than bogus software patents which is nothing else that Apple and Microsoft have in the area of smart phones. Apple patents are all bogus, all worthless. Apple never invented anything, you don’t get serious patents if you never invent anything.

    Google can block all iphone sales tomorrow if they want. That’s the rules of cold war. If Apple thinks it can block sales of Android devices for one more second, Google can destroy all iOS sales instantly.

    Google is not interested in destroying the iPhone, they don’t need to. The iPhone is destroying itself in the free market open competition that is what comes with more Android makers joining the market. Apple knows that and their last hope was to try to block the advance of Android through bogus lawsuits, but now that option is impossible.

  • Anonymous

    Read ths from a real lawyer

    http://fosspatents.blogspot.com/2011/08/25-billion-google-motorola-break-up-fee.html

    One particular issue with the weakness of Motorola’s counterclaims against Apple and Microsoft is that Motorola asserts FRAND-encumbered patents. I explained that concept recently in connection with Apple v. Samsung. The short version is that patents essential to industry standards are typically encumbered by FRAND licensing commitments and, therefore, a fundamentally weaker tool in such disputes than unencumbered patents. A standards-essential patent is like a parking meter: you can use it to collect royalties. But it’s not a gun with which you can simply shut a competitor down.

    Some companies try from time to time to obtain injunctions on FRAND-encumbered patents. But this sets off the alarm bells at regulatory agencies. Any use of FRAND patents makes litigation cumbersome and less likely to succeed. Nokia used a combination of FRAND and (mostly) innovation patents against Apple, and the case involving FRAND patents would have required (if they hadn’t settled before) three (!) separate jury trials…

  • http://ARMdevices.net/ Charbax

    That guy is not an independent lawyer, he’s obviously an Anti-Android shill just like you are. That guy has been wrong is just about everything he has posted. Lots of people have big problems with Android dominating the smart phone and tablet market like they are. There’s lots of money involved and just cause one anonymous guy starts a blog does not make him truth speaker.

  • Anonymous

    “The Nortel patents are worthless vs the Motorola patents. Hardware patents are worth 1000x more than bogus software patents.”

    LOL! Yeah, Google bid 4 billion dollars on worthless patents. Apple and Microsoft paid 4.5 billion dollars on worthless patents. I hate to tell you this, but analysts are already saying most of Motorola’s patents are worthless, old and outdated. The only patents where they are strong, such as in 4G, connectivity, and antennas, are already being licensed by Apple and Microsoft. 

    You are beyond ignorant.

  • Anonymous

    What are you smoking? Motorola is in worse shape than Nokia, which is a mouthful, and has been losing money at an alarming rate. They also have no real presence outside the U.S.

    As for your first comment, it’s a laugh riot. It’s also fantasy land BS.

  • Anonymous

    “Google can block all iphone sales tomorrow if they want. That’s the
    rules of cold war. If Apple thinks it can block sales of Android devices
    for one more second, Google can destroy all iOS sales instantly.”

    Your ignorance and stupidity is a sight to behold. Google can’t block crap, and thinking they could block all iphone sales tomorrow is just hysterical garbage.

  • Anonymous

    LOL! The dude in question dumba$$, is in fact a real lawyer and patent analyst. You’re shill who is shilling for Google. Please do everyone a favor and shut up.

  • http://ARMdevices.net/ Charbax

    That makes him a professional shill and a professionally trained liar. You go ahead and listen to that bogus wannabe Apple employee.

  • http://ARMdevices.net/ Charbax

    Motorola invented the cell phone, Apple invented nothing. It’s very simple. If Apple insists trying to sue all the small and big Android manufacturers, Google will use the Motorola lawsuits to render the iPhone instantly illegal to sell worldwide.

  • http://ARMdevices.net/ Charbax

    You’re just wrong. Nokia collapsed completely this past year. Motorola is doing great, is one of the leaders in the fastest growing consumer electronics market which is the Android based smartphone.

  • http://ARMdevices.net/ Charbax

    Google did not want the Nortel patents, obviously. It’s called bluffing, try to learn about poker. Just as Google did not want the 700Mhz spectrum in the US as they knew White Spaces will be even better.

    Your so-called analysts are not analysts, they are Apple shills, possible anonymized Apple employees or otherwise heavily invested in APPL stock. The Motorola patents are worth 1000x more than Apple, Microsoft, Nortel and Oracle patents combined.

  • http://veritysolutions.com.au/2011/08/21/watercooler-talk-tale-of-2-economies-usa-and-australia/ Watercooler talk: Tale of 2 economies – USA and Australia :: Verity Business Solutions Pty Ltd

    [...] seem much hope. Shall we return to the talk of alternative global reserve currency, if that helps?Two surprising and shocking news out of USA (one at the start and one at the end of the week) makes …Google's entry into hardware business (with the acquisition of Motorola Mobility); and the week [...]

  • http://www.noisetech-software.com/Home.html Steven Noyes

    Thanks for the laugh.  Given the near flat-line performance of Google’s stock over the past 2 years(heck, even the past 5 years) compared to Apple’s continuous march upward, this post takes on a whole new light.  Google down about 10% since Android was announced and Apple up almost 150%.

    I am guessing that immediate downturn of AAPL never happened?

    Ouch.

  • http://ARMdevices.net/ Charbax

    The main difference is Google share holders are well informed serious investors while APPL share holders are complete lunatics that live in the Apple reality distrotion field. Have fun with that. Seriously, $370 Billion valuation and most APPL profits comes from one single product, the iphone, that is being so obviously out-competed. Have fun with that. The value of 12 African nations to go up in smoke overnight, when APPL stock collapses it will be one of the biggest and fastest loss of value in history.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    And 97% of all Google products come from one product.  Get your head around that and have fun with that. All it takes is a single company to come out with a search better than Google (not hard after the last year of tweaks to the engine.  Like going to an imp lied “OR” search from the implied “AND” as well as the elimination of the “+” operator) and Google will disappear from the map in 2 quarters.  Have fun with that.
    The vast majority of investors are highly trained professionals that understand more about money than you ever will.  That is why institutions hold >70% of all stocks.  Mutual funds, pension funds and hedge funds hold most stocks of both AAPL and GOOG.

  • http://ARMdevices.net/ Charbax

    Google is the world leader in bringing more sales to all the worlds businesses and in the process providing the world with the worlds best cloud services for free.

    How is that comparable to a freaking piece of electronics and plastic such as the iPhone which has to compete with any other $59 no contract Android hardware out there!!

    Most APPL share holders don’t even know that more than 65% of APPL’s profits currently comes from only the iPhone.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    Thanks for proving you don’t understand a thing about Apple’s products and services.  Instead of spewing hatred of all things Apple out of your mouth, you really should try to learn about their products and services as well as what motivates a consumer.

    So you can pay $3000 for a piece of crappola phone or you can pay $3150 and get a well designed, clean and highly responsive phone.  OK, you may be dirt poor and price is the only thing that matters to you.  You may not care about quality one iota.  Do you think that universally defines every single person on the face of the planet?

    End Of Line.

  • http://ARMdevices.net/ Charbax

    Android phones are for example $99 with Gingerbread capacitive, NO CONTRACTS, $19/month unlimited voice/text/sms https://plus.google.com/u/1/106075758531242552855/posts/TftiFzuxaEU , that basically means ANY and ALL consumers in the USA can now choose to pay $118 minimum (and stop any time) with using a perfectly fine Android LG phone or they can sign up for a $2500-$3000 iPhone 4S 2-year contract. Android is 20x cheaper.

    Apple does not offer any “products and services” that would in any way motivate any consumer. Apple sells a $600 iphone and that makes up more than 65% of their current profit.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    Turns out you got the wrong company.  It was HTC, the second most prominent Android handset maker, you prognosticated.  Down 30% in a couple weeks over 60% in 6 months.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    So all these cheap Android phones come with 100% free text, voice and data plans?  Or are you lying about that 20x cheaper?

  • http://ARMdevices.net/ Charbax

    You don’t need any plan, you can use pre-paid, for example $5/month, whatever. I spend about $5 per month for voice/sms on my Android phone. $8/month for 1GB 3G data that I can use on all my devices through the Mifi.

  • http://ARMdevices.net/ Charbax

    Apple lost about $54 Billion in value over the past month. Yeah, you go ahead believe in the worthless value of their iPhone 4S and Siri.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    So all of the pre-paid sims are 100% free?  Or did you lie?

  • http://ARMdevices.net/ Charbax

    Of course, a SIM card costs about $0.1 to manufacture, why should they charge you for becoming their pre-paid voice/sms/data customer?

  • http://www.noisetech-software.com/Home.html Steven Noyes

    And Google, a much smaller valued company, is down $12 billion in the last week compared to Apple’s $12 billion.  In your view, is this a collapse of Google’s stock?  Just Australia’s ASX200 is down over 80 billion in valuation.  The general trend is to pull money out of stocks right now right now.  Between the super committee failure, Italy, France, Spain and Greece in dire straights in the Euro zone and there is lots of fear.

    Oddly, as people transition more to cash positions, consumption (on things like appliances and phones) tends to actually go up.  Go figure.BTW: Since you seem math challenged, Apple is down about 32 billion for the month.  Google is down $15 billion from its peak in the last month.Yea, go ahead and believe the Android eco-system is healthy and creates wealth for engineers, developers, handset companies, and designers.  You are a perfect example of why Android remains a profit looser and will of the foreseeable future.  A waste land of second rate support from both developers and handset makers as well a prime target for male ware.In the mean time, Siri (an amazingly powerful, easy to use, effective voice control system for interaction with your cell phone;  a system years ahead of Google’s rudimentary voice commands) combined with the fastest GPU on any phone and a great integer unit will continue to result in long lead times as iPhones roll out of the plants.Believe it or not, many people do value quality.

  • http://ARMdevices.net/ Charbax

    Android saved a dozen giant smartphone makers from bankruptcy, including Sony Ericsson, HTC, Samsung, LG, Motorola, Huawei, ZTE and many other, they would be nowhere without Android. And they are all thriving, growing, and gainging market share.

    There is only one way Apple market share can go, and that is down. If you don’t understand the difference, that is your problem.

    Google stock peaked at $617 over the past 6 weeks, that’s currently a $17 Billion decline in value from peak.

    Apple stock peaked at $422 over the past 6 weeks, that’s currently a $54 Bilion decline in value from peak.

    Siri is a piece of shit and you know it. 3 students out of college can program something like Siri. It’s the industry’s biggest joke that Apple only has Siri for their marketing of their latest iPhone which drives 65% of their profits and revenue. The underlying speech recognition technology that powers it is what’s important, and for that nobody can beat Google’s cloud. That Apple is worth over $300 Billion for the iPhone is the biggest joke, Siri is the second biggest joke in the industry.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    So you just get a free Sim card and there are absolutely no other charges associated with using the phone?  No monthly cost for voice, text or data.  It is 100% free?

    Or are you lying?  Do you intentionally obfuscate the truth to satisfy your religious beliefs?  You do know the iPhone is available unlocked as well?

  • http://ARMdevices.net/ Charbax

    It may be hard for you to believe but about 80% of the worlds mobile phones are on pre-paid plans, that means most people in the world do not sign up for any ridiculous 2-year contracts, people pay for credit to use in advance and people can use that credit over however long they want. The SIM card is free. Some times you have to buy your first $5 or $10 credit to get the SIM card included in the signup package. No need to give them your address, they don’t send you bills, if you run low on credit simply buy more credit at any kiosk in the country. And yes, by now the cheapest unlocked no-contract Android phones are sold at around $50 in China. That means the Chinese people in Shenzhen, Beijing, Shanghai, they pay $50 for the phone that looks just like any iPhone or Android phone, capacitive screen option costs about $5 more, and all of their voice/sms/data is pre-paid, and yes they may spend as little as $5 per month for that pre-paid service even if they are heavy users, you see, voice uses about 8kbitps of bandwidth and thus does not have to cost much, if anything.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    More straight out lies.

    SE: Ericson wants out after continuous losses.  Sony thinks they can magically turn things around.

    Moto: More losses than gains since going with Android.  Threatened to sue other Android Android handset makers (as well as explore WP7) to force a 12.5 billion purchase by Google.  Sad part is many years ago, Moto was the largest local employer.  Only Freescale has any presence anymore:-(

    HTC: Have you seen their recent projections for CY2011Q4?  Guess not.  This is a stock collapse.  If Taiwan’s market did not allow for maximum stop losses, their stock could be down as much as 80% from its high.  The sad part is I have always liked HTC and how they were run.  Steady growth.  Consistent product line.  Their only weakness was lack of vertical integration for competition against Samsung and Apple.

    ZTE and Huawai: no indication at all they were headed for bankruptcy ever.

    Samsung: A bright spot profit wise but their fastest growing smartphone platform (% wise) is Bada and not Android.

    Google: In for nearly 16 billion USD on Android and they still make over 67% of their mobile profits off of iOS.  Android could go down as Google single biggest business mistake ever.

    Developers: Over 90% of all developer direct sales revenue goes to iOS developers. Over 2/3 of advertising revenues go to iOS.  But then again, 0.3% of all apps in the Android Market are “Hello World” apps.

    Android so far has been a destroyer of wealth creation.

    Your problem is you are so emotionally and religiously attached to your views (mostly your hatred of Apple even though you have never once used a single Apple product.  As proof, simply look at your view of Siri.  One person in the entire world shares your view.  One.  You.  Siri so far eclipses anything similar from Google or Microsoft it is not even funny.  It is like comparing the mouse to the keyboard.  It is that far more advanced.), you are 100% incapable of looking at data rationally.  What will you do when (and it will within 6 months) AAPL hits $500/share?  Still shout from the roof tops Apple is doomed?

    But the biggest question is: If you really believe these above companies were heading for bankruptcy, why?  According to you, Apple only makes shit and does no innovation and has never come out with anything original.  What, pray tell, could have threatened these amazing companies?  BOOM! The sound of your head exploding with a flash of realization.

    NOTE: There is still a strong option for a greater melt down of all stocks similar to what we saw in 2007-2008 timeframe where all stocks sink to stupid low levels not based on the various companies real performance.

  • http://ARMdevices.net/ Charbax

    Sony Ericsson dominates smartphone sales in Japan thanks to Android. And Sony Ericsson is being sold to Sony thanks to Android.

    Motorola was on the brink of bankruptcy and now can be sold to Google for $12.5 Billion thanks to Android. You perhaps didn’t notice how since Droid 1, Motorola is growing its market share considerably.

    HTC was a nobody before Android, now is selling 45 million smartphones per year at the minimum. They may not grow their market share as fast as Samsung but that is mainly because HTC wants to focus more on high-end, thus their market share is being lowered a bit, like Apple.

    ZTE, Huawei, the whole of China’s consumer electronics industry is focusing 100% on Android. Except the orders for Apple stuff, near-100% of the rest of China’s manufacturing is based on Android. China is using Android as its official state-approved OS, baidu is doing their OS based on Android, China has had Android as number 1 in market share for now more than 2 years, earlier than all other regions of the world. Android has about 95% market share in China.

    Google is making most of their mobile profits on Android, by far. The purpose of Android is to accelerate competition, accelerate innovation, bring cheaper and better devices to people sooner. Mission by far accomplished. Without Android, your iPhone would be an even bigger piece of shit with still no multi-tasking, no App Store, no working antenna when held in your left hand, no 3G, no 4G, no nothing. Apple is not interested to improve their product, they just want to sell you more of the same crap.

    All the major developers are making more money providing the app for free on Android than providing it for sale on Apple App Store. For exampl Angry Birds is making more than 66% of its profits being a free app on Android and less than 33% being a paid app on Apple. Developers by far prefer to develop once and reach all the manufacturers in the world, keep 95% of app marketplace and in-app sales revenues to themselves instead of 70%. Developers prefer being able to let users get customized experiences using Android than having to follow the crappy monopolistic dictatorial rules of Apple.

    Android is the reason smartphones are improving at the rate that they are. The only wealth Android is destroying is Apple.

    Google’s speech recognition technology is 100x better than Siri. There are about 1000x more productive users using Google’s speech recognition every day than Apple fanboys using Siri.

    APPL is going down below $200 quickly, that’s another $135 Billion in loss of value. You just come back once this has happened and tell me I was right.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    Do you just make stuff up as you go?  Simply to suit your own religious beliefs?  For example: One outright lie you posted:

    “Google is making most of their mobile profits on Android, by far.”

    Then why did Google, just a few weeks ago, claim that over 2/3 of all their mobile based profits came from iOS and not Android.  In fact, the remaining 1/3 was split between Android, Symbian, WP7, BB and WinMo.

    This is just one of your several outright untruths in the above post.  How do you reconcile what you want to believe to what Google has gone on public record of stating?

    http://www.c-spanvideo.org/event/197476&timeline

    Do you really hope that outright lies will make something true?  Or are you saying that Google is the one lying under oath in front of congress?

    “For [example] Angry Birds is making more than 66% of its profits being a free app on Android and less than 33% being a paid app on Apple.”

    Is another example of a made up data point.  At one point, Rovio stated that Android revenue had just started matching iOS revenue (The one data point the religious followers of Google can point to but then they stop following the story) but then Apple provided in-app purchasing that allowed iOS to again trump Android on revenue generation ability.  Just another lie and made up data point?  Even then, however, Angry Birds is the out-lier of a company doing pretty good with Android on an Ad Revenue model.  Look under Stickiness to understand why.  The vast majority (as in an order of magnitude when compared to iOS) of Android developers are making squat.

    “Developers by far prefer to develop once and reach all the manufacturers in the world, keep 95% of app marketplace and in-app sales revenues to themselves instead of 70%. ”

    https://www.google.com/support/androidmarket/developer/bin/answer.py?&&answer=1153481
    Yet another fabricated datapoint you make up in your quest to paint Google and Android as a healthy eco-system with amazing profit potential for companies to create wealth.  Developers prefer to develop where the money is and that is iOS.  Pretty simple concept really.  That is why the Android Market is flooded with “Hello World” apps.  I found over 1000 hello world apps.  Over 1000.  Let that sink in.  Over 1000 apps that put a string on the screen and nothing else.  Not even fart sounds.

    Oops.  70/30 spilt as well.  Bummer you messed that up as well.

    Any more lies to spread?

  • http://ARMdevices.net/ Charbax

    There’s plenty of ways Google can make things sound like Apple is a strong competitor when everyone knows in fact Apple is a bunch of shit with no future. Google is compelled to come up with examples to try to make it sound that they are not too successful, for example Google says stuff like “oh look, Siri is actually a very strong competitor” when anyone with a brain can actually say the real truth is Siri is a piece of shit and is going nowhere. And that Siri is the biggest joke of the smartphone industry. Yet Eric Schmidt doesn’t have to lie about Siri, he can just quote any of the dozens of moronic reviewers writing big articles in all the big newspapers and those reporters thinking Siri is a big deal, when it’s a piece of shit.

    The vast majority of smartphone developers don’t get squat. Regardless of platform. iOS does have more morons per 1000 who are ready to overspend thousands of dollars on itunes and useless apps in the app store. Yet when you look at Android selling 4x more phones per day than Apple, the revenue potential being a free app on Android is FAR FAR higher than being a paid app or free app on iPhone. In the paid app space I believe Google Marketplace is going to add an all-access subscription plan which will bring billions of new dollars to app developers pretty soon and will replace most of the current paid app system. When Google activates that, the Android app income will instantly be 10x higher than on iOS overnight.

    When Google Marketplace splits 70/30 that is only when a carrier is involved and demands to take 25%. Google only takes 5% and if there are no carrier middle-men then the split is 95% for the app developer and only 5% to Google. Same share as for the Chrome Web Store. Same share as for Google Wallet, Google Checkout, Google Books, Google Music etc. Google doesn’t feel the need to take more than 5%.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    You have to love it.  The best you can come up with when presented with facts is:

    “Apple is shit”.  ”Apple is shit”.  ”Apple is shit”.  ”Apple is shit”.  ”Apple is shit”.  ”Apple is shit”.

    “Apple users are morons”. ”Apple users are morons”. ”Apple users are morons”. ”Apple users are morons”. ”Apple users are morons”. 

    “Siri is shit”. ”Siri is shit”. ”Siri is shit”. ”Siri is shit”. ”Siri is shit”. ”Siri is shit”. ”Siri is shit”. 

    “Charbax does not understand the Android market revenue split.” ”Charbax does not understand the Android market revenue split.” ”Charbax does not understand the Android market revenue split.” ”Charbax does not understand the Android market revenue split.” 

    Of course, you have never ever once used anything made from Apple.  You have never used its developer tool set.  I question if you have ever used Google’s Eclipse based Android SDK. You have never used Siri.  You don’t understand the idea of an eco-system.  You have no concept of systems engineering.  In short, you argue from a point of complete ignorance and when confronted with facts that 100% prove you are wrong (are you going on record as say Google made up numbers to Congress under oath?), you still argue the world is wrong and Charbax is right.

    BTW: Siri is cool.  Siri works great.  Siri is light years ahead of anything Google offers.  I love being able to ask “When does the sun rise”.  And I get an answer.  Not a link to a web page through a search engine but a real answer.  The level of contactual awareness in its conversations is pretty amazing and is a great start.

    The sad thing is you read rumor and innuendo and think of it indisputable fact so long as it promotes your religious believe system.  You are so closed minded as to be unwilling to try anything outside Android and pray to your technical deities that Google will be the new MS and control 98% of all smart phones in a warped and sick advertising dominated future.

    I want to be a customer and not a product like you.  Given that iOS is significantly better designed at an architectural level than the hacked together Android, iOS a serious contender and does not need >90% market share to make money.  Apple’s original projection showed a 1% market share is all that is needed to make the iPhone viable.  If they end up with 7%->12%, Apple will still end up with >90% of all the handset profits as component based systems capture only the lowest of the low-end handsets with little or no profit.  Developers will still flock to iOS as revenue will still exceed all the component based systems by 1.5->2.0X combined as the component based systems users only want free handouts.

    In short, chasing only market share is a fools game and until you learn that one simple concept, you will always be at a serious disadvantage.

    What a work of art.

  • http://ARMdevices.net/ Charbax

    Just to clarify, when I say Siri is shit, I say it simply in the perspective that it’s the biggest joke of the history of consumer electronics that a $349 Billion company bases it’s ONLY and MAIN product, the whole marketing revolves around it. Sure it’s better than 3 teenagers free Android app alternatives that do the same kind of thing, it’s about at the level of 5 Google engineers working on it for 2 weeks, so it is a decent free app. It is in NO WAY a reasonable argument for a basis for a $349 Billion company.

    I understand ecosystem, Android is the ecosystem of this world. Apple is no ecosystem, it’s a freaking monopoly.

    You are a joke if you believe Eric Schmidt actually believes Siri is “serious competition to Google search”, that “Bing is serious competition to Google search” or any of the other bogus reports Eric Schmidt has been quoting under oath such as the bogus Nielsen/Comscore iOS mobile browsing market share. It is in no way illegal for Eric Schmidt to quote the media, he is not asked for his opinion, he is asked to report the facts, and the facts are some parts of the media, often linked on techmeme, keep going on about Google actually having competition, so he is in perfect right to simply quote them as examples so if those congressmen read techmeme and believe in those bogus techmeme sources, there is no reason for them to prosecute any antitrust cases against Google, since techmeme is full of examples of how Google is being competed against.

    But you go ahead, you experienced Apple lover, just write your articles based on those Eric Schmidt oath hearings about how Siri competes with Google, how iOS dominates mobile web browsing, how Bing has 40% search market share, how despite Windows Phone going nowhere and iOS loosing marketshare worldwide they are still very competitive with Android, how Apple is making 110% of the industry’s profits all alone, how the people only want Apple products since they all queue in front of Apple stores every time they come with a new product. Yeah, you go ahead. Poor sheep.

    Siri is a joke. Simply because most of its replies are taken from a spreadsheet of joke answers, that get all that techmeme attention, Siri is a joke because it tries to immitate a few of the Google Voice Actions like sending a text message or adding an entry to a calendar and adds to that a few mostly useless Microsoft-invested short-lived-fad Wolfram Alpha spreadsheet type answers to questions nobody needs to ask, and for the rest uses Google’s own “I’m feeling lucky” technology which Google has since the 1990s, which so obviously doesn’t work for 99% of queries and that nobody actualy really want to use. And the rest sending to a Google search. That is not revolutionary technology. That is a pure joke of a reason for Apple to market their latest visually identical iPhone.

    You just continue believing Apple, a $349 Billion value, in a middle of a financial crisis, is going to survive for 2 minutes at such a high valuation when $50 Android phones are appearing at every super market, at every kiosk, Android phones are just about as cheap as a dumb phone of 3 years ago. 5 billion people are going to get Android phones in the next 3 years. Yeah man, go ahead believing it does not matter. Go ahead believing Apple will continue to get $600 per iPhone from the carriers, $749 unlocked from the consumer, or that consumers will continue to sign up for $3000 2-year contracts, no questions asked. Or they can get a $25 or free Android phone with free advertising supported service.

    Every market eventually gets commoditized. And with consumer electronics the profit stream playing field before commoditization usually is about 3 years maximum. That’s the time it takes for free market competition in the consumer electronics business to make that good idea so cheap nobody can make any money on it anymore, even as volumes are thousands of times larger. You just go ahead and believe Apple will find another cash cow like the iPod and iPhone. Yeah sure, they will make money on selling HDTVs, even though everyone can go buy a 42″ HDTV for $299 at Costco. Sure man, cash cow for Apple, easy. $349 Billion down the toilet.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    You start off with a lie in the first sentence:

    “Just to clarify, when I say Siri is shit, I say it simply in the perspective that it’s the biggest joke of the history of consumer electronics that a $349 Billion company bases it’s ONLY and MAIN product, the whole marketing revolves around it.”

    Nope:  They are also basing their marketing on iCloud, a processor that is faster than any other processor found in any existing or announced mobile phone (though they only reference previous iPhones; the A5 with the SGX543MP2 is a computational demon), and a substantially better camera.  Siri is a corner stone for sure but saying “ONLY” is an outright lie.

    Again, you show your complete ignorance about mobile (or maybe just Apple) by stating outright lies and falsehoods as “truth”.

    Another lie or indication you do not understand what you write:
    “I understand ecosystem, Android is the ecosystem of this world. Apple is no ecosystem, it’s a freaking monopoly.”

    Do you know what a monopoly is?  Does not calling Apple a monopoly contract every other thing you have ever said about Apple?  Hint: Apple is not a monopoly.  Do you understand what “eco-system” is?  Android is a platform but is serious lacking in the eco-system department.

    Where did I ever say that?
    “You are a joke if you believe Eric Schmidt actually believes Siri is “serious competition to Google search”"

    No, I said that Google makes 2/3 of all of their mobile advertising revenue off of iOS.  That is a statement of fact from Google.

    Statement with no point of fact
    “Siri is a joke. Simply because most of its replies are taken from a spreadsheet of joke answers”

    There is no indication this is true.  The Google Voice commands, like TellMe, are rudimentary command structures.  The fact I can ask Siri to call someone in a dozen different ways and never mentions “phone”, “call”, “voice” or a dozen other commands is down right cool.  It is light years ahead of Google’s rudimentary voice commands and MS’s rudimentary TellMe service.  Likewise, based on tests at the noisy local coffee shop, the iPhone 4S’s transcription ability far outstrips Google’s Gingerbread on HTC’s Thunder Bolt and Samsung’s Galaxy S II devices.  Can/will Siri be improved on?  Magic 8 ball says yes.

    Example of not understanding markets
    “You just continue believing Apple, a $349 Billion value, in a middle of a financial crisis, is going to survive for 2 minutes at such a high valuation when $50 Android phones are appearing at every super market”

    Why not?  Apple’s iPhone 4S is still selling out almost 2 months after release.  The iPhone sold almost 50% more units than all Android handsets combined in the UK for October (Yes, one month but that is a butt load of phones).  Surveys put 50% of iPhone 4S buyers as new to Apple’s eco-system.  Apple continued to grow at double digit rates in 2007, 2008 and 2009; a time period where the economy was substantially worse than it is now.  There is a difference between need and want.  Market share without utilization does not help Android in any-way-shape or form.

    Steve Ballmer – “$500 dollars, fully subsidized, with a plan.  I said ‘that is the most expensive phone in the world.’”
    http://www.youtube.com/watch?v=eywi0h_Y5_U

    The following is a sad statements but it is why your above statement is meaningless.  While unemployment is very high in many markets (we will say 10%), the flip side is employment rates are at 90%.  Likewise, Apple’s primary target audience tends to be higher educated and higher wage earners where the unemployment is closer to 5%.  Android’s primary target audience is a lower wage group with (on average) lower education and having a target demographic unemployment of around 15%.  This puts Apple’s iOS in a much stronger position during economic down-turns than Google’s Android.  Android may get market share but Apple will get the sales revenue and profit.  Although you will never admit it, Apple’s iPhones are much better designed, has a much smoother UI, gives easier access to more capabilities and has a much more secure (think male ware) environment than Android.  Many many people are willing to pay for that.

    Again, this is not about market share (though that is nice).  This is about companies (both Google and Apple) extracting value and profit from a product.  Again, both Google and Apple are for profit companies and are not autistic companies doing “nice things” for their user/product base.  They are both out to make a profit.  Each uses a totally different business model and neither model encompasses 100% of all people.

    OK, You hate Apple with every fiber of your body.  Apple makes your blood boil for some weird reason.  I am sure your have a Larry/Sergey/Eric doll you sleep with at night so you don’t have to be away from Google in your sleep.  Fine.  But you don’t have to make up half truths and down right lies to express your point.  Or better yet, actually use the products in question (Yes, I have used Android.  Unimpressed.) and actually make an informed opinion.

  • http://ARMdevices.net/ Charbax

    iCloud? Give me iBreak.

    The SGX543MP2 in Apple is down-clocked below 200Mhz, that actually makes Galaxy Nexus SGX540 at 380Mhz faster for most actual usage cases such as user interface acceleration and 3D games, perhaps just not in some specific benchmarks designed to show peak multi-core GPU performance.

    The Galaxy Nexus and many other Android devices actually run at up to 1.5Ghz dual-core, while it’s 800Mhz dual-core in iPhone 4S, Android devices even are about to run quad-core now, thus that simply is ridiculous to claim Apple has a better processor, Android runs up to 2x faster processors today at lower price.

    Apple wants to be a monopoly, they want to control and own the smartphone market. They are suing all Android companies based on complete BS patents that are completely worthless and you know it. Apple wants consumers to pay only through Apple, they want developers to be paid only through Apple, they want content to be sold only through Apple, the way they for example have excluded competing hardware from syncing with iTunes, the way they used DRM in iTunes to only work on iPods, the way they forbid Mac clones and don’t want to licence their software on other makers hardware, the way Apple blocks Flash support on iPhone and iPad, the way Apple is blocking thousands of totally valid apps from entering the App Store, apps like Google Voice had to wait a year to be “accepted”. With decent antitrust regulations, Apple products should have been banned from sales in most democratic “free market competition” societies years ago.

    Yea just look in your magic 8 balls, speech recognition is fine technology, it is not a basis for a $349 Billion business so threatened by much cheaper and much better Android competition. The usage stats all show speech recognition is a very small percentage of the use any user actually wants to do on a smartphone, not even considering how stupid people look when they try to use voice recognition on their smartphones when in public. But I guess you are used to looking like total douche-bags, you Apple fanboys.

    Oh yeah, just believe whatever BS “selling out” announcement by Apple’s PR department, and those bogus stats about Apple selling more than Android in the UK, keep dreaming. Android is selling upwards 5x more than iPhone in the UK. Every day, the whole year, and the gap is only rapidly increasing.

    Everyone enjoys spending less no matter how rich people are, no matter if they have a job or whatever. Just like most people don’t see a need to spend more than $500 on a HDTV, most people don’t see a need to spend 3x extra for Business class on an airplane, most people don’t see a need to spend more than $400 on a laptop. Soon enough most people won’t see a need to spend more than $200 on a smartphone, no contracts, nothing. You can keep dreaming that somehow Smartphones will stay a 400% profit margin business for Apple. You just keep dreaming with your AAPL stock.

    The difference between Google and Apple is that Google has decided since the very beginning that they can make money doing good for the world, and by making money being able to do more good for the world. Apple on the other hand thinks they can screw their customers and partners and treat them like shit and they just don’t know how soon that business model is not going to work anymore.

  • http://armdevices.net/2011/12/31/highlights-of-2011-on-armdevices-net/ Highlights of 2011 on ARMdevices.net – ARMdevices.net

    [...] tablet launched Linaro status in June 2011 July My first video of the Archos G9 tablets August Google buys Motorola (still processing through worldwide Government regulators needing to accept it) September Lenovo A1 [...]

  • http://www.noisetech-software.com/Home.html Steven Noyes

    So lets check in now after a month to see if AAPL suffered this impending (as in immanent) collapse:

    Google is down to $587/share from $617/share.

    Apple is up to $445/share from $422/share.

    The three iPhones sold overtakes the 70+ Android smart phones in the US market.

    Android tablets are still nowhere.

    Amazon’s Androidish tablet kills Google’s tablet aspirations.

    iOS unit sales for CY4Q11 surpassed Android device CY4Q11 activations.

    250 million Android devices.  350 million iOS devices.

    Apple is changing the eBook authoring game drastically.

    HTC posted a unit share decline and profit drop in a rapidly growing market.  Expects next quarter to be worse.

    Motorola squeaks a very very small profit.  SE not so much.

    Samsung is the one bright spot in the Android world.

    iOS web traffic beats Android web traffic by 10:1.

    In just a week, Apple’s market cap separates from Google’s market cap by almost $50 billion.  Zounds!!! Sounds like Google is in collapse!!!

    Google is still, at best, making between $0.10 to $0.13/month/handset off of Android gross.  Take into account R&D and potential liabilities, it might be closer to a break even proposition or even significant loss.

    The iPhone 4S still has the fastest GPU in any shipping handset.

    The 1 year old iPad 2 still has the fastest shipping GPU (even faster than the Tegra 3) of any shipping tablet.

    Siri drives 20X more traffic to WolframAlpha.

  • http://ARMdevices.net/ Charbax

    You’re welcome to put all your money in AAPL stock, don’t come back tell me I didn’t warn you when it’s worth less than half 6 months from now.

    Android tablets daily sales have overtaken the iPad.

    Android phones have 70% of the global daily sales of smartphones, soon 80%, there is no market share left for Apple.

    Android sold more smartphones in the last 2 years than Apple sold iPhones in the last 4 and a half years.

    Apple is a joke in the eBook game, nobody ever reads ebooks on an iPad. It’s a pure joke. Wanting to create a proprietary textbook format is the biggest joke.

    HTC is the worst of the big Android makers, HTC is stubborn wanting to immitate Apple. On the other hand Samsung, LG, Huawei, ZTE, Motorola, Sony, Asus these big guys know better what they are doing.

    Samsung alone sells more Android phones than Apple sells iPhones. Add to that all the other Android makers, there are nearly 4 Android phones sold for every 1 iPhone sold worldwide.

    Android web traffic is far in front of iPhone web traffic. comscore/nielsen etc are complete bollocks, those supposed stats companies are actually bought and paid by Apple and Microsoft.

    Apple share holders are complete morons, they buy a stock on Christmas sales numbers, of course Christmas sales is always up from the rest of the year. It does not change the fact Apple prospects are dark, very dark. Apple has no future.

    Google makes over $40 per year on Android users. $40 per year. Yeah read it again. That continues regardless of device, Android and it’s just about as much on any other smartphone type. The point is Google profits the more people use better smartphones and Android is pushing that forward like nothing else. Android users use Google services 10x more than non-smartphone users. Android users use more Gmail, more Docs, more Calendar, more Search, more Google+, more YouTube, etc I could go on, that is where Google makes their money, as people use the web more which is exactly what happens when they get a smartphone.

    iPhone 4S GPU is clocked at a VERY LOW sub-200Mhz FREQUENCY, which does barely put it at the performance of the SXG540 at 380Mhz in the Galaxy Nexus for example. And the Mali-400 in SGS2 released back in May 2011 still has a more powerful GPU than iPhone 4S, benchmarks mean nothing, you have to compare actual performance in use.

    Siri is a piece of shit and nobody actually uses it, it’s the biggest tech joke of 2011, have fun with that.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    WOW.  I am really starting to think you believe all the lies you write.  Pretty much you are 100% wrong on every account but lets take one:

    “Samsung alone sells more Android phones than Apple sells iPhones. ”

    Given Samsung shipped, at most, 32 million smartphones last quarter and that included >5 million Bada and 1 million WP7 handsets, that allows for about 26 million Android handsets TOPS.  I know a few estimates have it at 35 million but ASP would only support that if Bada shipments were in the >8-9 million units.

    Apple sold >37 million iPhones.

    Funny thing is, I can do this point by point and show where you are outright lying through your fingers and you still would jump up and down like a child saying it can’t be true, it can’t be true, it can’t be true.

    The best part it, you actually believe Google pulls in a total of $2.7 trillion  USD (you read right trillion) per year in revenue.  That is what Google would have to be making to support the rest of their balance sheet add up if they made $40/Android handset/year.

  • http://www.noisetech-software.com/Home.html Steven Noyes

    WOW.  I am really starting to think you believe all the lies you write.  Pretty much you are 100% wrong on every account but lets take one:

    “Samsung alone sells more Android phones than Apple sells iPhones. ”

    Given Samsung shipped, at most, 32 million smartphones last quarter and that included >5 million Bada and 1 million WP7 handsets, that allows for about 26 million Android handsets TOPS.  I know a few estimates have it at 35 million but ASP would only support that if Bada shipments were in the >8-9 million units.

    Apple sold >37 million iPhones.

    Funny thing is, I can do this point by point and show where you are outright lying through your fingers and you still would jump up and down like a child saying it can’t be true, it can’t be true, it can’t be true.

    The best part it, you actually believe Google pulls in a total of $2.7 trillion  USD (you read right trillion) per year in revenue.  That is what Google would have to be making to support the rest of their balance sheet add up if they made $40/Android handset/year.

  • http://ARMdevices.net/ Charbax

    You don’t have Samsung numbers, the Koreans do not give you their Smartphone sales numbers.

    And you obviously don’t know how to calculate. If all 250 million Android phones were in use $40/phone/year is $10 Billion per year. But since not all 250 Million Android devices are still in use, the number is closer to $5 Billion per year. That is, the revenue from Android for Google every year. That does not include the increase in revenue Google gets from iOS, Windows Phone, BB, etc, Google makes money on all platforms as all are forced to improve to compete with the awesome Android phones on the market. Yet obviously Google makes most revenue per phone when the phone is Android, simply cause more Google services are better integrated with Android unlike that crappy Wolphram piece of shit example on Apple Siri.

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