Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Apple Could Be the Loser in Google's Motorola Deal

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Google's (NASDAQ: GOOGL  ) move to offload Motorola could lead to a bevy of improved Android devices in the months ahead. Google's decision to exit the handset business follows a report that it has renewed its relationship with Samsung (NASDAQOTH: SSNLF  ) , the world's most dominant Android OEM.

With Google-made devices no longer a lingering threat, Samsung could be about to embrace a more stock version of Android -- improving its Galaxy phones significantly and putting further pressure on Apple's (NASDAQ: AAPL  ) iPhone.

Google and Samsung strike a deal
Just days before Google sold Motorola's handset unit to Lenovo, the search giant signed a broad patent-licensing agreement with Samsung. That deal was apparently just one of many -- according to Re/code, executives at Samsung and Google have been talking extensively, hammering out their differences behind closed doors.

In recent months, a certain rivalry had begun to develop between the two companies -- although they both need each other, reports from The Wall Street Journal and others have characterized their relationship as strained.

Strategically, Google develops Android to get people to use its services -- Google Play, Google Maps, Gmail, among others -- while Samsung gets a free operating system out of the deal. But because Samsung doesn't own the software, it's threatened by rising competition. If someone wants an iPhone, they have no choice but to buy from Apple. In contrast, there are many Android OEMs, and a longtime Samsung customer can easily switch to an HTC or Sony device when it comes time to upgrade.

Samsung's software is terrible
To counteract this effect, Samsung has been slowly putting its own touches on Google's operating system, tinkering with it in such a way as to differentiate its Galaxy devices from its Android rivals. This has included, among other things, a Samsung app store to rival Google Play, Samsung-specific email, messaging and browser apps, and a custom user interface known as TouchWiz.

But to put it bluntly, TouchWiz is utterly terrible. Reviewers have long bemoaned its ugly appearance, confusing mash of duplicate Samsung and Google apps, and, above all, its sluggishness (just search for "touchwiz slow" on Google). Samsung's take on Android seems have reduced its optimization, making it prone to the occasional stutter or crash.

Obviously, this all stands in stark contrast to the experience Apple offers on its iPhones -- one of simplicity and reliability. A half dozen conflicting apps, and the occasional software glitch, isn't the ideal offering if you aim to poach Apple's customers.

Farhad Manjoo, an admitted Apple addict, wrote about his experiences with Android phones, ultimately concluding that the only ones worth using were the few that ran Google's stock version of Android:

I saw, up close, Android's basic problem... Google makes a fine mobile operating system. Some phone manufacturers make attractive, powerful Android handsets. These phones have the potential to be really wonderful machines, even as great as Apple's flagship phone. But then... the phone makers...snatch defeat from the jaws of victory. They ruin the phones' potential with unnecessary features and apps that lower the devices' battery life, uglify their home screens, and make everything you want to do extra annoying... . The worst thing about Android phones... the modifications that phone companies make to Android's most basic features, including the dialing app, contacts, email, the calendar, the notification system, and the layout of the home screen.

Offering a better alternative
In short, by aggressively modifying Google's Android, Samsung has been holding its devices back, limiting their appeal. But with Motorola sold and Google and Samsung working more closely together, Samsung's Galaxy phones could be about to improve significantly.

If Samsung dials back its Android tweaks and embraces a more pure version of Android (akin to the one that has earned the Moto X so much praise), its Galaxy phones would offer a much-improved user experience -- a more stable, less confusing handset.

iPhone owners are notoriously loyal to Apple, but Samsung's flagships remain the iPhone's biggest competition. With Google and Samsung seemingly on the same page, Apple could be about to see its greatest competition yet.

A better investment than Apple? Get our top stock pick for 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (3) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 01, 2014, at 12:44 PM, djtetsu wrote:

    Knowing google they will simply improve Android for everyone, and couldn't favor one over the others too much, if at all.

    Samsung didn't like Google competing against them.

  • Report this Comment On February 01, 2014, at 12:55 PM, drax7 wrote:

    Everything is bad for apple. Google buys Motorola was bad for apple, google sells Motorola is bad for apple. Apple should just shut down.

    Google pollutes everything it touches with junk e mail .

    We badly need a search engine not based on advertising.

  • Report this Comment On February 03, 2014, at 8:37 AM, jdmeck wrote:

    Not likely. BTW you need to loose the could word.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2818305, ~/Articles/ArticleHandler.aspx, 8/27/2015 3:32:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sam Mattera

Sam has a love of all things finance. He writes about tech stocks and consumer goods.

Today's Market

updated Moments ago Sponsored by:
DOW 16,374.33 88.82 0.55%
S&P 500 1,959.05 18.54 0.96%
NASD 4,735.78 38.24 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/27/2015 3:17 PM
AAPL $110.23 Up +0.54 +0.49%
Apple CAPS Rating: ****
GOOGL $653.11 Down -6.63 -1.00%
Google (A shares) CAPS Rating: ****
SSNLF $969.40 Down +0.00 +0.00%
Samsung CAPS Rating: ***
SNE $25.60 Up +0.56 +2.24%
Sony Corp (ADR) CAPS Rating: **