Motorola Mobility will however be run as a separate business by Google. It will function as a licensee of Android and the Android OS will continue to remain an open source.

Motorola had been one of the founding members of the Open Handset Alliance, and by 2008 had eventually made Android its sole operating system for all their smartphone devices.

While the handset manufacturing division of Motorola has not been doing too well for some time, it could be their vast collection of patents that attracted Google to buy the company.

Motorola has already got 17,000 patents, while another 7,500 patents are pending.

Google on the other hand is on the lookout for patents in order to compete with Microsoft, RIM and others.

A note on the Google Blog said, “Motorola’s total commitment to Android in mobile devices is one of many reasons that there is a natural fit between our two companies.

Google CEO Larry Page and Google’s senior VP of mobile Andy Rubin have both confirmed that the primary reason for buying over Motorola mobility is to get hold of their patents to strengthen Android.

Andy Rubin has also stated that the deal would in no way be a disadvantage to Google’s over 50 other partners.

Google will be paying $12.5 billion for this deal. The deal is subject to regulatory approval from various bodies in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility’s stock holders.

The fact that these companies manufacture tablets and handsets for Google, means that Google is the actual target of Apple’s attacks, although indirectly.

Apple has files suits against the above firms for multiple patent infringements across multiple countries, pointing out “slavish copying” of design and “look and feel.”

The European court has recently ruled in favour of Apple. The court has banned the sale of Samsung’s latest Galaxy tablet in most of Europe. Apple has also filed similar suits in Australia.

While the lawsuits so far are only aimed at the handset manufacturers, Brian Marshall, an analyst with Gleacher & Co, said that Apple is really concerned with the software being used by these devices.

Since the Android software being used in these devices is similar to their iOS 5 they have decided to take action. Thus it is Google that will effectively bear the brunt of the lawsuits.

Though Apple is the market leader of smartphones, the free Android software on Google’s phones, could affect Apple eventually. The Android software is being activated on 550,000 devices daily.

If Apple can win some injunctions against this free software, consumers would be forced to pay for the use of the Android OS and this could make the Android OS less popular than it is.

At present Apple holds 75% of the market share for tablet devices. But this is expected to come down to 39% by 2015, while Android’s share will go up to 38%.

This war over patents had initially been kicked off by Google, when they sued Microsoft, Oracle, Apple and other companies for the acquisition of 6,000 patents from Nortel.

Similarly, last October, Motorola sued Apple for violating 18 patents in its iOS-based devices,. Now Apple has sued Motorola for violating 6 of their patents.

“It’s clear that the tablet wars are going to be fought on many, many fronts,” Michael Gartenberg, technology analyst with Gartner.

eBay reports that the amount of shopping done through mobile handsets saw significant growth during the last holiday season.

Considering the importance of e-commerce in everyday life, it was only a matter of time before mobile shopping, or m-commerce as it is being called, followed suit.

According to the report from eBay, about 6 million people across 165 countries, have installed an eBay application on their mobile phones, and eBay receives 750,000 unique mobile visits daily.

1.5 million purchases were made via m-commerce on eBay during the 2009 Christmas holiday season, which is almost 3 times the level seen during the same period in 2008.

The total revenue generated via eBay mobile applications in 2009 was reported to be worth half a billion U.S. dollars, and a new transaction took place every 2 seconds. This alone should be enough information to make a number of companies rethink their mobile strategy

Consumers are not just using mobile phones to make small purchases of items of daily use. Some very high-ticket luxury purchases were also made via mobile. Examples cited by eBay include a 23-foot deck boat, a Boston grand piano and a 1966 Chevrolet Corvette.

In a separate report, mobile phone manufacturer, Motorola, found that the usage and impact of mobile shopping technologies exploded during the 2009 holiday shopping season. The survey identified that 64 percent of Gen Y (age 18 to 34) shoppers used their mobile phones for in-store shopping-related activities during the holiday season.

With the ever-increasing amount of news pointing to the growth of mobile in just the first 2 weeks of the year, one wonders if 2010 might finally be the real year of mobile?

Business Week reports that Motorola has invested $50 million in their Android Social Phone project, which will be managed by Motorola-owned mobile email company, Good Technology.
Motorola will require at least 6 months before they are ready to launch their new phone. They have not even announced a name for it as yet.

The phone is expected to have a touch screen like the iPhone, and a slide out QWERTY key board like the HTC T-Mobile G1. The look, though, is expected to be on the lines of the Motorola Krave, and it is likely to be cheaper than the G1 phone, at around $150.

The G1 phone is already capable of transferring contacts from ones Gmail account into the phone. It is likely that Motorola’s Android phone may take this one step further by tieing up with Facebook and or MySpace, to enable transferring contacts from these social networks into the phone’s address book. This would also enable users to check status updates and activity streams on the phone itself. Facebook has a similar facility with the iPhone, but they require a separate app for this, which may not be necessary on Motorola’s Android.

Whether people will be really keen on getting Facebook or MySpace on their phones or not will decide the future of the Android Social phone and indirectly that of Motorola too.

Though Motorola is the third largest mobile phone manufacturer in the world, their mobile phone division has made losses to the tune of $1.9 million in the last year and is desperately in need of another success story like the RAZR. They hope the Android phone might be just the thing they need.