In other words—and I never thought I’d say this—Steve Ballmer was right. Android isn’t free. In fact, it’s not even cheap. As Daring Fireball’s John Gruber points out, the $12.5 billion that Google is spending for Motorola amounts to almost two years’ worth of the search company’s profits. No company—not even Google—can throw around that kind of cash without envisioning a direct return on its investment.
That’s why I’m betting that this deal will represent a turning point in how Google operates Android. Today, the platform is “open” but chaotic—because phone-makers get the software for free and can do whatever they want with it, Android is available on some good phones as well as lots and lots of cheap, bad ones. In the aftermath of this deal, Google will seek to exert greater influence over hardware companies. Eventually, the deal will help reduce the number of new Android devices that are released every year, and the few that are released will be of generally higher quality—and sell for higher prices—than what we see in the Android device market today.
I continue to feel that this was an absolutely idiotic purchase. Google Spent more on Motorola than it makes in its profits every 2 years? Whoa.
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