What does Google's Motorola deal mean for you?

Android devices look set to improve, but deal may open new doors for Microsoft

Google has entered into an agreement to acquire mobile phone company Motorola Mobility Holdings for approximately $12.5bn (£7.7bn).

The mobile platform is set to remain a licensee of Android, as well as an 'open' platform to be run as a separate business alongside Google.

"Motorola Mobility's total commitment to Android means it is a natural fit for Google. Together, we will supercharge the entire Android ecosystem for the benefit of consumers, partners and developers," said Larry Page, CEO of Google.

However, as tablets and smartphones continue to become increasingly popular within the enterprise, Google might find that it loses some traction in the market.

The hardware companies that manufacture these products will go from being Google's partners to its competitors.

Some analysts argue that this could see the same hardware companies opt not to take up Android, but rather the Windows Phone platform instead.

Ovum analyst Nick Dillon said: "The move raises concerns for the wider Android ecosystem, as the acquisition means that Google will become a hardware vendor. Google will become a competitor to Android handset manufacturers, potentially placing significant strain on the Android ecosystem."

He added that if Google provides preferential access to its own hardware division, other device manufacturers would be at a disadvantage.

"Given Google's recent move to exert greater control of the implementation of the Android platform, such as restricting access to the Android source code to select hardware partners, such a move is not beyond the realm of the imagination," said Dillon.

"One beneficiary of any move away from Android would be Microsoft and its Windows Phone platform, as many larger Android manufacturers, such as Samsung, LG, HTC and ZTE, are also Windows Phone licensees," added Dillon.

Google will hope that businesses continue to take up Android though, and is banking on Nvidia's new Kal-El chip to enable its devices to compete more fiercely with Apple's iPad and iPhone products.

Nvidia's processors already power Android Honeycomb tablets, such as the Motorola Xoom and Samsung Galaxy Tab 10.1, and its new quad-core processor is expected to take Android devices to new heights. The chip has been touted as the key to enabling better performance, smoother functionality and lower power consumption for Android devices to more fiercely compete with Apple products.

"With Project Kal-El, our quad-core processor, we're planning to take mobile computing to even higher levels," said Phil Carmack, senior vice president of the Mobile business at Nvidia.