Motorola not satisfied with Android?

[scorpiodsu]

Motorola Apparently Not Satisfied With Android -- InformationWeek

Here are my thoughts:

But when they got into developing Android devices the number of competing manufacturers were certainly not a large as it is today. Besides HTC there weren't anyone else really major at the time. Now you have everyone and their mom loading Android on their hardware. Good for Google/Android and consumers but bad for the manufacturers. Not only are they competing with the likes of RIM and Apple, they are also competing with each other and struggling to differentiate themselves. Most hardware is the same. They try to change the form factor and UI as much as possible without messing up Android. They devouring the sales of each other and have to improve a product a lot faster than they use to. That's a lot if most and them may not being selling enough to warrant the cost.

Sure Android in it's aggregate amount is selling great but if you took 1 Android device only a couple will actually have great sales. I agree with you though, I have no confidence in them pulling off their own OS. I'm pretty sure the pressure and costs incurred with being a premium Android device maker is great. They were probably forced to put out the Xoom to beat the iPad 2 and Galaxy tab 10, HTC tab, LG tab, etc. It didn't have all the features, only a pricey option and infant OS. So they spent all that money making the device and now they are see the consequences of being a manufacturer of Android products and having to beat other manufacturers to the market even if the product isn't good or ready. And face harsh criticism and low sales while Android still lives on and gets better on other devices. Sure, Android saved them, but that was a while ago. Today it could be killing them.

I don't think Motorola is sitting pretty like people think they are. Android may have resurrected them but the "open and free" nature of the OS has caused too many competitors and diluted products with little differentiation because of many manufacturers wanting in on the fun. I don't know what will happen going forward but being a manufacturer that produces Android devices may not be worth or enough to make it a viable option.

What do you guys think?

 

[Johnly]

Honestly, Motorola don't even need to be in the cell phone business. That is a small consumer facet they do. They will be just fine. I agree, android resurrected their cell dept. All the other business their in could care less about android.

 

[Maikai.Guy]

What do I think? I think it's another article with little to no basis in fact. These guys have a job to do. When faced with no provocative news, they will make something provocative up.

Imagine this guy talking to his girlfriend/wife:

"I don't know honey, I don't think I can get paid on another 'XOOM sucks' article. It needs a new angle. How about saying Mot is going to kill the platform?

No? That one was done last week? Really? Darn it!

I got it! How about saying Mot is going to replace Android! Yeah! That's it! That's that ticket! Motorola is going to replace Android and Google is worried.

Yeah! This is gonna be good. I can't wait until I see how many comments I get off this one."

 

[bbalz]

Moto is foolish if they're not satisfied with Android/Google. They pulled them out from their grave.

 

[krazy]

But when they got into developing Android devices the number of competing manufacturers were certainly not a large as it is today. Besides HTC there weren't anyone else really major at the time. Now you have everyone and their mom loading Android on their hardware. Good for Google/Android and consumers but bad for the manufacturers. Not only are they competing with the likes of RIM and Apple, they are also competing with each other and struggling to differentiate themselves. Most hardware is the same. They try to change the form factor and UI as much as possible without messing up Android. They devouring the sales of each other and have to improve a product a lot faster than they use to. That's a lot if most and them may not being selling enough to warrant the cost.

This is describing why Google who was late to the game has caught Apple who created the best phone ever at the time. If Google would have kept Android to just 1 or 2 carriers we would not be where we are told with the platform or the hardware. Mot knew it was an open platform when they started using it on their hardware. If they don't like it they can put a ton of CAPEX (capital expenditures) into creating their own just to find out they will do it no better than Nokia and it will end their consumer phone business.

 

[slinky317]

My thoughts here: They're referring to webtop. It's obvious it needs a little bit of work, and has the potential to be something good. If they could keep Android on their handheld devices and make a new OS strictly for their webtop display, that would work out pretty well.

 

[Johnly]

My thoughts here: They're referring to webtop. It's obvious it needs a little bit of work, and has the potential to be something good. If they could keep Android on their handheld devices and make a new OS strictly for their webtop phones, that would work out pretty well.

That is an intellectual thought.

 

[lobobuzz]

Motorola Apparently Not Satisfied With Android -- InformationWeek

Here are my thoughts:

They were probably forced to put out the Xoom to beat the iPad 2 and Galaxy tab 10, HTC tab, LG tab, etc. It didn't have all the features, only a pricey option and infant OS. So they spent all that money making the device and now they are see the consequences of being a manufacturer of Android products and having to beat other manufacturers to the market even if the product isn't good or ready. And face harsh criticism and low sales while Android still lives on and gets better on other devices. Sure, Android saved them, but that was a while ago. Today it could be killing them.

What do you guys think?

IMO... I've grown so tired of all these negative theories, opinions and thoughts. My Xoom rocks and far exceeds my expectations every day.

I'm glad Motorola released the Xoom when they did, appreciate the Flash update and looking forward to the micro card and 4G upgrades. Keep up the great work Motorola and looking forward to more relevant content in this forum as a Xoom owner.

 

[Drew2u]

I love how the author of the linked article is basing his speculation on what he cites is the speculation of his colleague. Pretty soon if everyone keeps speculating it's no longer speculation, but fact. Not for being factual or true, bur for having the appearance of truth... truthiness, to use Mr. Colbert's word.

 

[cody_21]

I have to agree with MaiKai.Guy because I mean android brought their phone department back to life. I do not see motorola ditching android for a new OS, it would be bad on their part. I most i see happening is them tweking blur or working on some kind of other skin to work on top of android like HTC sense for example.

 

[Guamguy]

Motorola doesn't have the resources to go alone with its own OS. Much like HTC, LG, Sony Ericsson. Nice to have your own OS but very difficult to start your own now. Maybe you have to be as big as Samsung, but Motorola isn't.

Also, just because you got your own OS, doesn't reduce dependence on Google. Just look at the GMail, Google Maps and Google Search widgets on Bada OS and the Samsung featurephone OS.

 

[frenzy757]

I dont understand why making their own OS would increase profitability...I am assuming the resources needed to defvelop and manufacture hardware will be about the same regardless of Android or their own OS...but now they have to spend money on the OS...

The only way they can think this will increase profitability is if they sell MORE phones this way than with android, which I dont think they will. Their per phone cost will always be higher developing thier own OS...they still have to develop and manufacture the hardware...

Just my thoughts

 

[scorpiodsu]

I agree with you guys that the Android platform help resurrect Motorola. But maybe it just doesn't work anymore with all the manufacturers using the same platform. I think that's a possibility. To assume that what was good for them before is still good for them now would be a little naive. And that's not citing a problem with Android but maybe a problem with Moto if this is the case. Maybe they are tired of having to recreate so often because as soon as they drop a device here comes HTC followed by samsung the LG. Now Moto's sales suffered because it's been devoured by other Android devices. That wasn't the case when the original Droid hit because other manufacturers weren't pumping out devices like this.

I'm not saying that Moto should or should not do it. I'm simply saying that everything might not be as rosey as it seems. Sure, Android help resurrect Moto but if it isn't profitable for them ANYMORE, why are they obliged to stick with it? Answer: They aren't. Whether this is just water cooler talk or has some substance I'm sure Moto wouldn't stop focus on Android if everything was fine and dandy. If they did change their focus then it's obvious that what we think about them having to dedicate their entire existence to Android and Google is a little ridiculous.

In the mobile space, the big players all make software. Apple makes software. RIM makes software. Windows makes software. Google makes software. And Apple and RIM being 2 that also design their own hardware. Maybe Moto aspires to do the same and not just be a hardware manufacturer for a platform that's available to any manufacturer. Remember, being "open and free" is a benefit to customers and Google not to the manufacturers who have to constantly deal with new competition. Again, I'm not saying Moto should do this or that or whether they will succeed or fail. What I am saying is that it is possible and everyone isn't making the kind of money on Android that we think. After all who are we to decide what's best for Moto?

 

[scorpiodsu]

I dont understand why making their own OS would increase profitability...I am assuming the resources needed to defvelop and manufacture hardware will be about the same regardless of Android or their own OS...but now they have to spend money on the OS...

The only way they can think this will increase profitability is if they sell MORE phones this way than with android, which I dont think they will. Their per phone cost will always be higher developing thier own OS...they still have to develop and manufacture the hardware...

Just my thoughts

The short answer is that while developing their own OS they wouldn't put as much money into making devices for other platforms, thus saving them money to put towards their own R&D.

 

[frenzy757]

The short answer is that while developing their own OS they wouldn't put as much money into making devices for other platforms, thus saving them money to put towards their own R&D.

BUT, they still have to build phones for their OS...which would require the same R+D plus manufacture as their android phones, unless they resort to building cheap crap hardware.

 

[scorpiodsu]

BUT, they still have to build phones for their OS...which would require the same R+D plus manufacture as their android phones, unless they resort to building cheap crap hardware.

I agree but during the time they are developing their own platform the money that they would have used to go towards making a bunch of devices for Android now goes to their own R&D. I'm not sure how to be more clear. This would mean they would produce as many Android devices and/or won't spend as much resources focusing on them so they can focus on their own stuff.

For instance, if you are working for someone else and want to start your own business it may be hard to find time to focus on it. So instead you work part time or quit altogether so you now have time to focus on what you want to do. Same thing here except time = money spent to create devices for someone else.

 

[stopsign002]

Eh, I tend to take these stories with a grain of salt. It almost seems like the news industry wants Android to fail. I would totally believe they are hiring these people for webtop or for that lame excuse for a overlay they put on their phones (In case you couldn't tell I HATE motoblur). They still sell tons of Droid Xs and such. It's hard for me to believe they arent getting a good enough piece of the android pie. If anything sony erricson would peace out of this game first I would think lol

 

[MatthewSchenker]

Hello,
Intuitively, this doesn't make much sense to me. In the end, if you think about it logically, opting out of Android can't help Motorola financially.

If they developed their own operating system, Motorola would still have the same competition from various Android devices. Having their own operating system doesn't get rid of that element. But they would be pitting an undeveloped system against one that is gaining maturity.

Purely financially, Motorola would have the development and customer care costs of dealing with their own operating system, rather than having total access to an already powerful and accepted system.

Also, the Android platform, even after an expensive development process, is just beginning to see a firm customer base. Why would any single company think they could start that all over again, and come up with something better, on their own?

Who knows, but it just doesn't seem logical to me.

Thanks,
Matthew

 

[scorpiodsu]

Hello,
Intuitively, this doesn't make much sense to me. In the end, if you think about it logically, opting out of Android can't help Motorola financially.

If they developed their own operating system, Motorola would still have the same competition from various Android devices. Having their own operating system doesn't get rid of that element. But they would be pitting an undeveloped system against one that is gaining maturity.

Purely financially, Motorola would have the development and customer care costs of dealing with their own operating system, rather than having total access to an already powerful and accepted system.

Also, the Android platform, even after an expensive development process, is just beginning to see a firm customer base. Why would any single company think they could start that all over again, and come up with something better, on their own?

Who knows, but it just doesn't seem logical to me.

Thanks,
Matthew

It doesn't seem logical to anyone who doesn't know how Android affects a manufacturer. Sure, from the outside looking in, it doesn't make sense. But who knows what they see and the aspirations they have. And yes they would still have competition BUT they will have something different. And that may very well be the point. Now whether they should or not, is all opinion but anyone acting like it can't be done by them or anyone else is just being a little unreasonable. 3 years ago, there was no Android, 4 years ago there was no iOS. Who knows what will be here in the next few years. None of us have a clue. I'm pretty sure none of us predicted what happened to the smartphone market over the past 2 years and surely can't predict what will happen and most definitely do not know what's best for any of these companies because of what we think. We really don't have a clue. Having said that, it's very risky and hard to pull off.

But if they aren't making the margins they need now, what else should they do? Keep working on expensive devices for Android and then have other companies put out one that kill your sales because at the end of the day, there is little difference between Android devices. It one to battle platforms it's another thing to battle another manufacturer with the same platform. Before they can even think about having the best device they have to worry about being the best Android device. Having your own OS changes the scope of your market because IF (and that's a big if) you have a good platform then you can be secure in the fact that if people want it they can only get it from you. The real money is having your own OS. This is why Google is creating their own PC platform. The money is in the OS. And if Moto can get all the right people together, who knows what can be accomplished.

 

[MatthewSchenker]

It doesn't seem logical to anyone who doesn't know how Android affects a manufacturer. Sure, from the outside looking in, it doesn't make sense. But who knows what they see and the aspirations they have. And yes they would still have competition BUT they will have something different. And that may very well be the point. ...

But if they aren't making the margins they need now, what else should they do? Keep working on expensive devices for Android and then have other companies put out one that kill your sales because at the end of the day, there is little difference between Android devices. ...

I see what you're saying.

However, I would imagine Motorola quitting the whole tablet business before they developed their own operating system. If their margins are so small even when using an operating system they don't have to develop and maintain, their margins will be even smaller after they factor in the development of their own system.

I understand the idea that they might be undersold by another Android maker charging $100 less for a tablet. But going their own way would likely make the price difference even greater, and make even fewer people likely to buy a Xoom.

The fact is, there will be intense competition in the tablet market this year. No tablet maker is going to avoid that.

Since competition looks the same either way, it seems more beneficial for Motorola to spend their money becoming the number-one Android device on the market. That way, they'll get ahead of everyone else without the burden of developing and maintaining their own operating system.

But like you said, we're not in the Motorola executive board room! Who knows what the fine details of all this looks like from the inside. Read the financial section of any newspaper, and you see that companies often come up with decisions based on analyses that don't make gut-level sense.

Anyway, I hope all this is untrue. I'd like to know that some big names are dedicated to Android's future.

Thanks,
Matthew