Asian smartphone makers are expecting the Google’s $12.5bn bid for Motorola Mobility as a boon rather than a blow and thus executives and analysts have already started analyzing the prospects of the growing competition from a Google-owned Motorola.
Undoubtedly Samsung Electronics is the world’s biggest producer of Android phones by sales, shares of which have recently cited a jump of 6.1 per cent on Tuesday. On the other hand, HTC also rose by 3.1 per cent with hopes that Google’s gaining hold on Motorola’s patents will help in protecting Asian hardware makers in the smartphone patent war.
Production of Android-based phones has majorly contributed in making Korea’s Samsung and Taiwan’s HTC as Asia’s two largest phone makers by sales, both of which are engaged in patent infringement lawsuits with Apple.
Regarding the situation, a Samsung official said that though the Google-Motorola deal is expected to close at the end of the year, it would not serve the lawsuits in anyways. Also, he further added that this could definitely protect the company from all the future patent disputes.
Park Kang-ho, an analyst at Daishin Securities, said Google, “can certainly give preferential treatment to Motorola by providing Motorola with its updated Android operating system first. It will negatively affect Samsung’s and LG’s strategies by delaying their new product launches”.
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