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With the smartphone battle largely confined to iOS vs Android, Google is going full steam ahead in its quest to usurp Apple. One way to do this is by making sure there are enough participants in the Android programme, but more importantly sign up manufacturers to the Open Handset Alliance (OHA) which allows them use of Google's Play Services and the various APIs that come with it, for a license fee.
Guess what? Not all Android phone makers have signed up with Google for use of Play Services and so don't have to pay Google any fee. This is totally legal and manufacturers preload third-party app stores or leave it up to the user to sideload apps, which is native to Android and not controlled by Google. A huge proportion of these non-official Android phones (these are not counted in Google's Android activation numbers ) are in China, a country that Lenovo knows all too well.
Lenovo is a partner in the OHA, so it already complies with the terms that come along with it. Google's decision to sell Motorola to Lenovo is a way of ensuring that more phones in China ship with Play Services and add to the bottom line. With Lenovo's marketing muscle in China, Google has found a great ally to pass on Motorola to, a brand that did very well in China, before the smartphone 'explosion'. In 2006, it accounted for nearly a quarter of the market , a figure that has diminished to insignificant levels now. Google is hoping the brand still resonates with the Chinese buying public, who have shown great appetite for smartphones running Android. There are shades of Nokia and India here, and with the Finnish company clawing its way back in India, brand Motorola can't be counted out yet. Of course, it remains to be seen whether brand Motorola indeed does live on under Lenovo.
Outside China, Motorola's production units and carrier tie-ups allow Lenovo potential to scale up faster and more access to the networks that were afraid to sign up the relative unknown in the smartphone business. This, analysts believe, will be beneficial to Google as it will help stem the growth of rivals iOS and Windows Phone by adding a recognised name to the mix. It is especially true in the US and European markets, where Lenovo has struggled without the same recognition it has in China. It could also curb Samsung's stranglehold in many markets, which will be beneficial for the overall development of Android. Silicon Valley-based Rob Enderle of Enderle Group believes this is a major factor in Google's decision. "Google was not happy with Samsung owning the Android market," Enderle told AFP .
Other analysts agree with Enderle. "The combination of a Samsung-Google peace pact and Motorola going to Lenovo means that Samsung has pledged allegiance to Google's Android," Forrester analyst Frank Gillett said. "From Apple's point of view, this means Samsung will remain strong but tight with Google, and the aspiration of Lenovo to become like Samsung and to be even stronger in emerging markets starting with its position in China."
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