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Google moves from vendor to competitor?

17 Aug 2011

Google has agreed to buy Motorola Mobility for US$12,5-billion but analysts warn that by doing so it has moved from being a vendor of its operating system for mobile handsets into a potential competitor according to a report published in the Mail & Guardian.

Quoting analyst Francisco Jeronimo, the Mail & Guardian says that more than 30 other handset manufacturers use Google's Android operating system and companies such as Samsung, HTC and Sony Ericsson may turn to Microsoft's Windows to diversify their risk of being linked to a single platform.

According to a number of reports, Google's main reason for buying the ailing handset manufacturer was so that it could get its hands on thousands of patents that are owned by Motorola.

In a related story, the Mail & Guardian reports that shares in Motorola Mobility rose by 59% after the deal was announced.