Will Google`s purchase of Motorola doom uneasy Android alliance?

Google CEO Larry Page made public Tuesday messages he exchanged with CEOs of the Web portal engine`s partner companies on the acquisition of Motorola Mobility via the Google homepage.

The messages show that Google gave prior notice to its major partners before the official announcement of its acquisition and received congratulatory messages from them.

Samsung Electronics President Shin Jong-kyun said, “We welcome Google’s decision that shows its strong dedication.”

Park Jong-seok, head of LG Electronics’ mobile communications division, said, “We welcome Google’s commitment to defending the Android camp.”

Such messages, however, are mere “diplomatic rhetoric” in the business world, according to experts. In reality, Google’s takeover of Motorola has caught Android phone manufacturers by surprise.

○ Samsung, LG welcome Google’s takeover on the surface

As soon as Google unveiled the Android operating system in 2007, handset manufacturers around the world began raising fears over Google’s advance into smartphone manufacturing. Just like Apple, which is raking in astronomical profits by producing both an operating system and handsets, Google will produce its own version of the iPhone, handset manufacturers said.

Google, however, has reassured manufacturers by ruling out an advance into smartphone production.

Reassured by the promise, Samsung, which had produced the smartphone Omnia that runs on Microsoft Windows, has boldly replaced the operating system with the Google Android. Google has provided the Android to handset manufacturers free of charge and, as a result, Android has beaten Apple’s iOS and Nokia’s Symbian in the market share for smartphone operating systems with 43.3 percent of the global smartphone OS market in the second quarter this year.

Google’s partnerships with handset makers are poised to crack, however. Google said it will operate Motorola as a separate entity, but Android phone manufacturers will eventually compete against Google.

The purchase of Motorola has shown Google’s ambition to dominate not just the smartphone market but also all media forms, experts said. They said CEO Page’s comment -- “Motorola has a strong competitive edge not only in Android but in the appliances market.” -- deserves attention.

All Things D, a website devoted to information technology, said Google’s acquisition of Motorola is a mere stopover leading to Google’s final goal of dominating the living room.

If Google makes a foray into the market for appliances such as smart TVs by making the most of Motorola’s technologies, Samsung and LG will find themselves in fierce competition against Google.

○ Windows to benefit from takeover

Samsung is trying to craft answers to Google`s takeover. The partnership between Samsung and Google is unlikely to be affected for the time being, however, because both sides badly need each other`s cooperation.

Instead, Samsung is expected to foster its own operating system over the mid to long term while reducing its dependence on Android.

On Google’s takeover of Motorola, Samsung Vice Chairman Cho Ji-seong said Tuesday, “This has been fully expected and will make no big difference,” adding, “Samsung has its own operating system and can also utilize the MS Windows system.”

For one thing, Samsung is likely to step up efforts to distribute its operating system Bada. The Bada phone is growing more popular in the European market, with its market share increasing in the second quarter this year to 1.9 percent from 0.9 percent in last year’s second quarter. The figure is larger than the MS Windows Phone’s market share of 1.6 percent.

Samsung plans to unveil its new Bada phone at the IFA, the world`s largest trade show for consumer electronics and home appliances, to be held in Berlin next month.

Certain experts said the MS Window Phone will benefit from Google’s takeover of Motorola. Samsung has released its new Window phones abroad and will unveil them in Korea.

After Google’s announcement of its purchase of Motorola, Nokia shares soared 17 percent in New York and 9 percent in Helsinki due to expectations that the Finnish mobile phone maker, which has joined forces with Microsoft, will benefit from the takeover.

Amid rumors that Microsoft could buy Nokia, Samsung is expected to foster its Bada operating system while striking a balance between Android and Window phones.

jaeyuna@donga.com