Will Google Battle Apple in 2013?


In the video, Motley Fool analyst Eric Bleeker discusses how Google can use its 2011 acquisition of Motorola to take on Apple and even Microsoft .

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 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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The article Will Google Battle Apple in 2013? originally appeared on Fool.com.

Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published