Why Google Told Motorola to Stop Making Phones

Image Source: Smartphoneenvy.com

Back in May of 2012, Google bought Motorola Mobility for 12.5 billion dollars. Since then, things have looked grim for Motorola. This week, Google announced that it would severely cut back production and staff and warned Motorola users that it might be a while before they see the next Motorola handset.

What Is Going On

Sometimes it’s easy to forget that the friendly owners of your favorite search engine are actually a giant, wildly profitable corporation with their eye on the bottom line. But they are. And this week they proved just how far they’d be willing to go to make a buck when they sacked 4,000 of Motorola’s 20,000 employees and closed 30 out of 90 factories.

This headline-grabbing move is Google’s attempt to severely curtail production. In Google’s opinion, Motorola has been headed in the wrong direction. By firing employees and scrapping phones, Google hopes to start from scratch and recreate Motorola in Google’s image.

Motorola is Now Google

Image Source: Technobuffalo.com

Why They Did It

Google’s actions seem severe, but there is a method to their madness.  When Google bought Motorola Mobility in May, it had failed to turn a profit in the last 12 out of 14 quarters. Basically, it was a sinking ship. By cutting the fat and shaking things up, Google hopes to put that ship afloat again.

What This Means for Motorola Lovers

For the foreseeable future, this means that we’ll be seeing fewer Motorola phones on the market. So if you’ve got an older model that you’re looking to upgrade, don’t hold your breath. It may be time to check out a few of our reviews to see if you can’t find a Samsung or HTC that might meet your needs.

But there’s good news too. Part of the reason why Motorola was failing was because they put their energy into cheap, low-end phones like the Motorola Milestone  or the Motorola Motoluxe. Sure they were affordable, but they weren’t helping Motorola make its mark in the tech community.

If Google’s plans work out, Motorola phones could soon return to their former glory. After all, Motorola did develop the first cell phone in the world. Surely that legacy deserves better than low resolution screens, minimal storage and sluggish processors.

Motorola's Former Glory

Image Source: Gigaom.com

In the future, Motorola will produce just a few phones a year. And those Androids will be top of the line. And we think that’s pretty exciting. In the past, Motorola has been able to change the tech game when they put their minds to it.

By focusing resources and man power, they may come up with the next greatest Android. We predict great camera phones, better screens and fast as lightning processors. And we hope we’re right. Until then, we’ll keep you posted on the details.