With Apple (NASDAQ:AAPL) and Samsung (SSNLF.PK) duking it out up top, and Nokia (NYSE:NOK) and RIM (NASDAQ:RIMM) fighting over the scraps, Google (NASDAQ:GOOG) has found itself discontent with having the widest-selling software in the smartphone war, and is looking to take advantage of its acquisition of Motorola and put out a mysterious device that could rival the other front-runners.
Google is looking to make devices to distribute through its carrier partner, Verizon Wireless (NYSE:VZ). As much of a secret as new Apple devices, Google’s rumored “X-Phone” — a name reminiscent of both the iPhone and X-Men — is likely to develop some following before its release. There are also hints of an X-tablet in the works, showing that Google means to put both feet in the water. Key to this development is the addition of Motorola to Google’s toolbox.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
CHEAT SHEET Analysis: Is Google about to get its money’s worth from Motorola?
One of the core components of our CHEAT SHEET Investing Framework focuses on catalysts that will move a company’s stock. Mergers, acquisitions, and joint ventures are always events investors should watch closely. How much money is being spent? How quickly will shareholders recognize a return on investment?
Google purchased Motorola for $12.5 billion earlier this year and has already been working to squeeze out hundreds of millions from Motorola’s patent portfolio, a fact with which Microsoft (NASDAQ:MSFT) is struggling to contend. Now, Google will try to use Motorola’s device-making expertise, and Motorola’s recently-acquired imaging and gesture software designer, Viewdle, to produce a line of quality-over-quantity smart devices.
If Google manages to make a strong market competitor that can come close to matching the popularity and sales of the likes of the iPhone or Samsung’s Galaxy series smartphones, the company would see some great returns on its investment in Motorola. Motorola has been on the forefront of cellphone design, with the super-slim Razr and with the Rokr, which pushed the budget on haptic-feedback technology in phones. Together, Google and Motorola snag a powerful position in the smart-device market.