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Google’s Motorola deal shakes Asian mobile makers

Google (GOOG.NASDAQ) has pledged that its bid for Motorola Mobility Holdings (MMI.NYSE) will not hurt the business of the Asian smartphone makers that use its Android operating system, including HTC (2498.TW), Samsung Electronics (005930.SEO), LG Electronics (066570.SEO) and Huawei Technologies, the Wall Street Journal reported. Google will run Motorola as a separate business and will continue to run Android as an open platform, said Google CEO Larry Page. Spokespeople from HTC, Samsung and LG echoed Google’s positive tone on the acquisition and reasserted their support for the Android operating system, but Neil Mawston, an analyst at Strategy Analytics, said Google’s takeover of Motorola could be both a threat and an opportunity for these companies. The deal “will make the Android ecosystem a little less attractive to other Android hardware partners” like Samsung and HTC because “Android has becomes less of a level playing field,” he said. Google also faces potential challenges managing Motorola Mobility’s China business, one of its key growth segments, following a public spat with Beijing last year over censorship requirements and cyber attacks.

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