Google’s $12.5B deal for Motorola Mobility shakes up the mobile market


The company had some success with the Droid, one of the first phones to run on Android, but it now ranks a distant eighth in the smart-phone market, with 4.4 million units shipped in the second quarter, according to research firm Canaccord Genuity.

By comparison, the market-leading iPhone shipped about 20 million units.

An attempt to counter the iPad hasn’t paid off for Motorola Mobility, either. In an effort to drum up more demand, the company recently cut the price on the Wi-Fi-only version of its tablet, the Xoom, to $499 from $599.

The troubles saddled Motorola Mobility with a $56 million loss in its latest quarter, sinking the company’s stock price to one of its lowest points since its January spinoff from the old Motorola Inc. The remaining part of that company now runs as Motorola Solutions Inc. In contrast, Google earned $2.5 billion in its most recent quarter ending in June.