I normally don't like to post rumors but this one has me feeling a bit sick. Again, it's just a rumor but boy, it really hit me today. According to Pulse, Google is considering unloading Motorola's hardware portion to another company. In this case, it's Chinese handset maker Huawei.
It would be a great deal for Huawei. It'll gain a very prominent brand as well as a global position in the mobile market its own brands have failed miserably to do.
Even if Google only wanted Motorola's patents, it certainly now seems like a stupid move by Google's execs. And it makes the rumors all the more likely that Motorola Mobility basically forced Google's hand when it considered dealing with Microsoft either through a settlement or patent buyout and/or considered suing other Android device makers.
Here's a very good WSJ post on this, which I think is where the rumor originated. Android is thriving and mobile warriors could care less the politics that is going on behind the scenes regarding Android development and the forking threats, which could be a more serious issue than just fragmentation. At heart is where Google wants Android to go.
Even now, skins are covering up the underlying experience of the pure Android UI. All the while, Google's hardware partners continue to cast a wary eye on what will Mountainview do with Motorola. Selling the hardware part of Motorola would go a long way in allay any fear that Google will compete against its partners in order to reap the hardware profit rewards.
Personally, I love to see Google and Motorola put together a crack team of hardware and software engineers along with designers to create a new family of devices. The market needs that kind of innovation and the competitive pressure that Google can exert can only be a good thing for the consumers.
I hope this rumor isn't true.