Major Issues in the Google - Case Study Example

Google is not directly enjoying the profits of Android technology by outsourcing it but in actuality, Google is getting information regarding the upcoming desires and wants of the consumers and society. This acquisition with android has given a very positive impact on the financial conditions of Google. This program of Google is executed with the thought of the customers having an Android phone will be able to connect all the contacts of Google like Google+, Google Chrome, Gmail, and many other Google applications that are being used by the customers on daily basis.

From 2008, with an adaptation of android technology the net income of strikes high profits and increased by more than 30% each year till 2012. The impact of the acquisition of android has proven itself by its remarkable performance in gaining rapidly increasing profits with a high percentage. In 2012, there were approximately 700,000 applications available for Android and 25 billion applications were downloaded by users from Google play. This sounds like a great achievement for Google.

In the opening quarter of 2012, the financial report speaks that Google brought around $2.9 billion in net income on $10.9 billion of revenue. On the other side, Motorola mobility lost around $89 million on $3.1 billion in revenue during the first quarter of 2012. In the initial phase after buying Motorola Corporation Google encounters some losses but Google's strategy was to earn with the long-term strategic plan. Two big transactions made by Google in December 2012 greatly impact the financial position of the company. The manufacturing operations of Motorola Mobility were sold by Google to Flextronics for $75 million and sold Motorola Home business division to Arris group for $2.35 billion in a cash and stock transaction. Through these two transactions, Google acquired a 15.7% stake in Arris group valued at $300 million. This immediate effect develops the understanding that Google's acquisition of Motorola will give some great and huge innovation in their pipeline products or services as we saw 5 years when Google's acquisition of android was undertaken.

There are three big returns for Google in merging with Motorola:
- Right of entry to the portfolio of Motorola patent which may then permit links like HTC and Samsung to secure next to the extended arm of Apple’s lawyers.
- An integrated hardware/software takes part in the battle with Apple Corporation. The difficulty with this reason is that the agreement does not address the breakdown on the Android platform which is the more difficult problem.
- The set-top big business to make better its covering Google TV offering.

The android operating system with its open source model approach confronting the criticism of the model causes the code (software) base to fragment. Another criticism encountered that is online services and the android operating system does not connect. Along with the criticism, this technology provides a wide range of benefits to users.

The advantages of open source approach are as follows:
- Superior in quality with the continuous development process.
- Customizability in its development.
- It gives the liberty of using with own intent.
- Flexibility in the advancement of both software and hardware.