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Motorola Mobility yet to see benefit from Google acquisition, say sources

Erica Yen, Taipei
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Despite the completion of the acquisition by Google in May 2012, Motorola Mobility is unlikely to benefit significantly from the deal and may not make a turnaround until 2013 at the earliest, according to industry sources.

Motorola Mobility apparently did not gain much of the privileges over the newly released Android 4.1, despite persistent concerns that Google will be giving preferential treatment to handset vendor after the acquisition, indicated the sources.

Google has repeatedly stated that it will stay neutral in the development of related Android business, and the release of the Jelly Bean seems to be in line with such a policy, said the sources. Additionally, Google has also announced that it will increase the number of production partners for the Nexus smartphones and will release in advance its new Android OS.

But the acquisition will be meaningless if there are no reciprocal exchanges in business between the two firms, commented the sources, adding that Google definitely will optimize the hardware manufacturing capability at Motorola for production of next-generation Android devices.

The product life cycle of the Nexus smartphones could be short, and Google is expected to launch its next-generation Android smartphones under the Motorola brand, the sources asserted.

With full support from Google, Motorola may able to regain sales momentum in the smartphone market in 2013 at the earliest, said the sources.

Article translated by Steve Shen