Originally Posted by NachoKingP
Google's acquisition of Motorola Mobility was about the acquisition of patents, plain and simple. They weren't looking to enhance Google TV with Motorola's STB business, or stave off Motorola making Windows Phone devices. Google has no need to fear Windows Phone devices because the platform is no threat to them, it only accounts for 3% of all mobile sales. Google's hardware partners and Google themselves have been attacked in courts of late by many companies, including Apple, over patent issues, and they were trying to bolster their patent portfolio. The importance of patents in today's patent-troll era cannot be overvalued. Would Google have liked to see Motorola succeed more? Absolutely. But ultimately, Google isn't in the hardware business, they're in the services business. The Nexus lineup, the Google Play Experience device lineup, and the Moto X/G experiments were exactly that, experiments. They were never meant to bring in huge profits. Google also maintained Motorola's Advanced Research division when they sold Motorola Mobility to Lenovo, because there are some more experiments in the pipeline that Google is highly interested in, such as Project Ara. But don't be mistaken, ultimately, Google sells ads and uses that profit to try their hand at other things. They don't always succeed, as is obvious if you just look at their other offerings. For every Gmail and Google Maps, there are things like Google Buzz and Google Wave. Google can afford to lose money on projects like that because they have a sound business with their AdSense.
I could comment on all your other points, however, I will focus on this one since I know this subject the best.
Google originally went after Motorola as plan B to their screw up on the Nortel patent acquisition and Motorola was in fact in conversation with M$ again since they were afraid of the position Android was putting them with Apple. Motorola and M$ has a long relationship prior them dumping everything for Android. Apple and Motorola were involved in a battle of the patent themselves, and Motorola attempt to blackmail Apple in to licensing all there iphone non-essential to get access to the Motorola essential standard based patents. This came to light during the due process on the acquisition approval by the EU and FTC. When the EU and FTC found out what Motorola was attempting to do they bared Google from suing competitors with the Motorola patents. This requirement alone rendered most of the patents worthless. At this point Google was in the hardware business they had to make a go of it. To this day Motorola is the only cell phone manufacture which Apple has not paid the FRAND fees for the patents becuase Motorola and Google could not back down from the position on cost of their license.
They were in fact interested in the Motorola Home business, since it was the largest supplier to the video market place. They had a gem here and it played right into what they wanted to do. They we so interested in that business they spend more time with that business than they did with phone business prior to the acquisition being approved. Well this was short lived because the Cable industry step in and told the EU and FTC they saw google as competitor and did not want their largest hardware and software manufacturer being control by Google. As soon as the deal was done, google immediately went looking for a buyer for the home business they were not allow to touch it.
Back to Motorola, google wanted and need Motorola to be a success since Samsung was gaining too much power and originally what want to compete against Apple on the high end since Motorola in fact had success in that space before. But they realize too late they could not break back in , so they went for the middle ground since business tend to buy in the middle of cheap and expensive phone. Well this was not working either since Apple was picking up what RIM was losing. As a last ditch effort they attempt the lost leader idea of just getting volumes of product out there and hopes to gain revenue from adds on these phones. Samsung was treating to go with their own OS on future product and looking to dip in to the ad revenue space cutting google out.
Yes google some part of the Motorola stuff, but they will not capitalize on it their tract record on this subject it poor. Yes Google as come up with some neat stuff like street view (the mapping cars) and google earth this people like using and it helps them sell more ads. But form an overall technology stand point they are just really improving on what others have done before them. They definitely do it better when is comes to their service but all the money they put in to hardware has not returned a penny to the bottom line, they can not even claim to spin of ideas the let them grow by themselves.
I highly doubt your 19% revenue from mobile for Google, I am not going to chance the number number but it is low than that, and 80% to 90% of that was coming form IOS devices and is declining as people move away from the google ad products. There is plenty of article on this fact alone. I will also say PC are dead, yes companies are still buying them to replace what they have, but I can tell more and more people are using their Iphone and Ipads at work verse the PC. Most PC at work are not used to surf the internet and look at ads. As a whole, PC industry is declining and unless google can some how capture the mobile ad market they are going to be in serious hurt.
So to you point, Yes Google is not in the hardware business, they claim to fame is ads and service, but they seem to spend more money on hardware and fail miserably at it, but Wall Street seem to like this since they taking risks to grow.