Tomahawk, WI 10/22/2013 (BasicsMedia) – Google Inc (NASDAQ:GOOG) has emerged as one of the world’s premier companies when it comes to innovation and investments. As things stand, GOOG has not restricted itself only to a few products or even a single industry. The company has diversified in the real sense of the word, into industries that no one would ever have expected it to go into. Analysts are often forced to scratch their heads wondering why Google Inc invested in a certain company. Take the example of Moto X, a product that has come out of Motorola, which is a new division in GOOG.

Why Google Acquired Motorola

Analysts are now wondering why GOOG chose to acquire Motorola in the first place. I think this was a strategic move by Google since the company understood that Motorola had many patent licenses and certificates that could be of immense value to GOOG both in the short-term and long-term. Interestingly, Moto X is going for not more than $99 and below for those with a contract. It is one of the lowest priced Smartphone devices currently in the market. The low price for Moto X has led to rumors to the effect that GOOG is using it to blower Smartphone prices.

Motorola Yet to Bring in Profits to Google Inc

If this is true, there is nothing wrong with such a move. Google Inc is perfectly within its rights to pursue such a path if this will give it competitive edge over its rival Smartphone makers. The consensus within the industry is that Moto X is not a spectacular phone, akin to what we see with other products such as iPhone 5S. There is concern whether this is what Google intended to produce when it acquired Motorola for a whooping $12.5 billion about two years ago. Motorola has brought losses to Google Inc; it lost $192 million in 2012 and $248 million in 2013.

I doubt if GOOG bought Motorola and allowed production of Moto X with the intention of making losses. There is a plan somewhere that GOOG has with Motorola and Moto X. My belief is that Google Inc uses Moto X to help drive the costs of Smartphone devices down, thereby, messing up with other company’s revenues. Apple Inc and Samsung Electronics are just but two of the companies that are raking in huge amounts of money through sale of Smartphone devices, and may be affected should the prices of such gadgets start dropping due to Moto X’s role.

Google Needs More People to Use the Internet

GOOG’s single mission is to help drive people towards increased use of the Internet. This is Google Inc’s bread and butter and the core reason why it is in business. If it cannot perform well through its search engine, the entire business model will be in serious jeopardy. Therefore, if GOOG has to use Motorola and the low-priced Moto X to achieve this goal, well, it is its right. If this product helps Google to reduce the massive $53 billion that Apple and Samsung earned collectively as profits in 2012, no one will begrudge it of this goal.

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