Eric notes that underlying the Android maker's decision to acquire Motorola was a desire to stay competitive in the patent wars. Moto's patents can add as much as 2.25% to the top line through royalty rates, which could become crucial as Microsoft charges high patent fees on Android devices, courtesy of the patents it owns and has developed. Even Nokia's (NYSE: NOK ) chest of patents could prove harmful for Google.
Of course, Google can also use Motorola's expertise to get into the hardware section of the smartphone space. Google partnered with Asus to manufacture the Nexus 7, but there's nothing stopping it from developing a branded phone with Moto -- and that could be bad news for Apple.
However, all this comes with the risk of losing the loyalty that Google enjoys from its partners such as Samsung, which controls the majority of Android sales.
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