There were a few raised eyebrows when
) invested $12.5 billion into Motorola's patents last year. Now,
after reporting a dismal quarter, in which Motorola pulled down
Google's results and had it announcing job cuts, the company
could be hitting pay dirt.
On Tuesday, Google expert Michael Dansky told a Seattle court
) would make $94 billion in revenue from its Xbox game consoles
and Surface tablets incorporating Motorola technology through
Based on these numbers, Google estimates that Microsoft should
be paying it $4 billion a year, while Microsoft claims that the
amount should not exceed a million dollars. Going by the number
of private sessions the two are taking with the judge, it's clear
that Google is asking for money that it will at least partly
Just the day before, a Madison, WI judge set aside
) claims that Motorola was asking for too much, although notably,
the judge did not furnish reasons (AP report). Motorola's claims
with Microsoft remain unclear at the moment, but the company has
been asking Apple for 2.25% of the price of Apple devices using
Wi-Fi or cellular technologies.
Despite rumblings on privacy issues, Google has been more or
less successful in legal matters. The
) ultimately worked in its favor and it successfully wrapped up
both ITA and Motorola acquisitions, despite anti-competitive
concerns raised by
) and others.
Gartner estimates that both Android and Windows-based devices
(smartphones, tablets and computers) will grow very strongly over
the next few years. However, while Windows-based devices will
grow 52% from an estimated 1.5 billion at the end of this year to
2.28 billion at the end of 2016, Android devices will grow 278%
to 2.3 billion units during the same time period.
While Microsoft has been relatively less successful in the
wireless segment, the company is set to make a splash with its
Surface tablet and latest Windows Phone OS. So this is a good
time for Google to cash in.
Google, Microsoft, Apple and Oracle currently carry a Zacks #3
Rank (short-term Hold rating). Expedia on the other hand has a
Zacks #2 Rank (Buy rating over the next 1-3 months).
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