The entirety of the deal is still secret, but we think the basic gist of the deal is that Google stops making hardware and competing with Samsung, and Samsung backs away from software and stops trying to usurp Google’s control over Android.
The deal makes sense for both companies—Samsung wants to sell hardware, Google wants to make software, show ads, and get data. With Motorola gone and each company having a well-defined role to play, there’s no reason for the two to be at each other’s throats all the time.
The new model is basically Wintel—Samsung plays the part of Intel and makes the hardware, and Google is the new Microsoft, focusing on software.
Interesting. Microsoft buys a mobile hardware makes, and Google sells one. The industry shakeout is starting to get very interesting. And I still think that you’ll see Lenovo playing an ever-increasing global role.