Google Inc. (NASDAQ: GOOG) will cut 4,000 Motorola workers now that the buyout of the handset maker is complete. Media outlets claim the cuts will come because Google only wants to build smartphones and that other handset development at Motorola will end. Google needs to bring down costs at Motorola if it expects the hardware operation to make money.
Research shows that the only two corporations making money in the smartphone industry are Samsung and Apple Inc. (NASDAQ: AAPL). The market share of former stars such as HTC have begun to erode. Google will need to move up a steep incline to avoid what many analysts call a two-horse race.
Douglas A. McIntyre
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