But now, with the launch of the Moto X, Google has a chance to turn the tables as Motorola Mobility Holdings Inc (NYSE:MMI) is a brand that is traditionally associated with US government and defense agencies, thereby lending the company the much-needed corporate credibility. That, in itself, would justify Google’s mega $12.4-billion acquisition of Motorola Mobility. And if you add to that the Moto X phone’s supposedly long-lasting battery power, an already sore point for modern day smartphone makers, coupled with the advanced sensors that helps the phone to better ‘understand’ user preferences, this looks like the beginning of a true ‘life companionship’.
The new kids on the block
And now, a brief look at the Google newbies. To start with, there’s Google Glass, the product that’s supposed to usher in the age of wearable computing. Apple Inc. (NASDAQ:AAPL) has already expressed disdain for it, with CEO Tim Cook saying at a recent tech conference that he doesn’t know a lot of people who would wear a pair of glasses voluntarily in public. Given that Apple is not usually in the habit of openly criticizing its competitors, can we perhaps take this as a sign of alarm at the product’s possible potential? Only time and the iWatch can tell that.
The other significant factor is Google Fiber. Although still at an experimental stage, there’s no reason to believe that Google does not have any commercial motive in the entire thing. And even if it’s just for the sake of motivating telecom operators to offer better Internet speeds and bandwidth, that just means more surfing and more ‘Googling.’ Which is also where products like the Chromebook Pixel would likely come in handy for people hooked on to the Google ecosystem.
My Foolish takeaway
Having said that, the path ahead is unlikely to be super smooth for Google Inc (NASDAQ:GOOG). The company has already been facing scrutiny by the Government on a number of fronts for quite some time now. And Motorola is certainly a brand name that has failed to regain the confidence of mobile marketers and telecom operators lately in almost every major region in the world, including the crucial US market. But, even then, as I mentioned in the beginning, its ‘diversity’ that’s going to eventually win the day for Google. And further growth is just round the corner. Sit back and relax if you own this stock and keep smiling for the next couple of years, if not more.
Subhadeep Ghose has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.
The article Google: Hard Reality Or Plain Euphoria? originally appeared on Fool.com and is written by Subhadeep Ghose.
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