Aberdeen States Google Acquisition of Motorola Mobility Offers More Opportunity Than Meets the Eye

BOSTON, MA -- (MARKET WIRE) -- Aug 15, 2011 -- In response to the announcement of the Google acquisition of Motorola Mobility, Andrew Borg, Senior Research Analyst, Wireless and Mobility for the Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), has responded with the following statement:

"The value of Motorola Mobility's telecommunications patent portfolio is considerable, but does not tell the whole story. The significance of Google's first major market entry as an equipment manufacturer should not be underestimated. Without necessarily upsetting the Android OEM applecart for Samsung, HTC, and their other licensees, Google will have a captured handset division that could, for example, target the developing world with an ad-underwritten entry-level low-cost or no-cost handset. And, with Motorola Mobile's set-top box division, they could embed Google TV functionality to more deeply penetrate the consumer home market then they've been able to so far."

As Borg described over three and a half years ago in the October 2008 Analyst Insight " Google Android and Chrome: Pay No Attention to the Robot Behind the Curtain":

"Like beads on a string, the core elements of the Google strategy begin to align. The vision of a seamless global ad delivery network from desktop to handset, from browser to newspaper to television screen comes into focus. This predicates a unified browser model from desktop to mobile, with a unified back end (data cloud) to serve apps, network storage, and the ads which make it all possible. Oh, and don't forget web search services."

Other key insights from the 2008 report include:

  • "From the viewpoint of the investment community, it's the size of its audience, the 'stickiness of their eyeballs,' and the greased lightening of Google's web advertising delivery model which is responsible for its relatively high valuation (notwithstanding current market conditions)."

  • "From this vantage point, Google's mission appears inverted: to use the universal need for comprehensive Web search to create distribution for the world's most efficient, personalized, and customizable advertising delivery network, across all media."

  • Two recent international patent filings through the Patent Cooperation Treaty (PCT) indicate Google's mobile platform imperative:

    • Advertisements for devices with call functionality such as mobile phones

    • An "Instant Bid" capability for mobile devices which would allow them to log onto multiple wireless carriers, no longer tethered to any one carrier

  • "By moving their ad delivery model onto mobile devices with Android (and eventually Chrome), the total available market can theoretically grow exponentially."

  • "If the entire world's 'plain vanilla' feature phones are combined with all of its smartphones, the total number of mobile devices dwarfs the number of desktop and laptop computers by orders of magnitude. And, for the developing world, handheld devices will be the web access tool of choice."

Visit Aberdeen.com for access to additional complimentary research.

About Aberdeen Group, a Harte-Hanks Company
Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 854-5200, or to learn more about Harte-Hanks, call (800) 456-9748.

© 2011 Aberdeen Group, Inc., a Harte-Hanks Company
451 D Street, Suite 710
Boston, Massachusetts 02210-1928
Telephone: (617) 854-5200
Fax: (617) 723-7897

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