This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

What Will Be Google's Android Strategy for Motorola?

NEW YORK (TheStreet) -- What kind of smartphones and tablets could Motorola's Mobility division build for Google's (GOOG) Android strategy going forward?

First, let me make two assumptions so that we are all on the same page:

1. Google will soon divest a variety of Motorola business units, including the TV set-top boxes.

2. Google will keep the smartphone/tablet business, and perhaps some related items.

With that out of the way, let's discuss Google's constraints and options with respect to how it can plan an Android product portfolio for smartphones, tables and related devices.

The first issue is the most difficult one, and indeed the most painful one to ask and answer, and that is: What are Motorola's capabilities anymore?

Consider this: In the last six months, Google's other hardware partners have accomplished this:

  • Asus made a Nexus 7 tablet starting at $199
  • Samsung made a Nexus 10 tablet starting at $399
  • LG made a Nexus 4 phone starting at $299
  • Acer made a Chromebook (laptop) starting at $199
  • It is hardly controversial to say all of these are better and more cost-effective devices than anything Motorola has produced.

    Even if Motorola had not been distracted by the pending (August 2011 to May 2012) merger with Google, could it have profitably engineered and manufactured any of these four devices at these kinds of prices?

    This type of capability breaks down into several dimensions:

    1. Timing: How quickly can Motorola cough up a new design and deliver the finished product?

    2. Quality: Can the fit and finish compete with Acer, Asus, Samsung, et al.?

    3. Cost: Can Motorola accomplish any of this at a competitive price?

    Obviously these three things hang together, to some extent. You can always have at least one out of these three. However, even two out of three is not good enough -- this is the big boys' game now, so you cannot tolerate falling behind on a single metric.

    All of these prices for the newest Google gear listed above has been class-leading, and widely lauded. It also appears that most of this work has happened in Asia. Yes, it's true that I'm not saying that all or most of the work needs to happen in Asia, but there is one thing here that is a bit suspicious to me, and that's Chicago.

    Stock quotes in this article: GOOG 

    Select the service that is right for you!

    COMPARE ALL SERVICES
    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    DOW 16,494.60 -19.77 -0.12%
    S&P 500 1,875.46 -4.09 -0.22%
    NASDAQ 4,128.6190 -32.8390 -0.79%

    Brokerage Partners

    Rates from Bankrate.com

    • Mortgage
    • Credit Cards
    • Auto
    Advertising Partners

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs