What If?

The recent buy of Motorola by Google caught many in the tech world by surprise and certainly shows a shift in mindset by the Internet giant so long dependent on advertising. It's a jump from writing algorithms to making mobile phones but with their Android software it's a synergy that Google sees as profitable. I'm sure the folks at Nokia, RIM and other phone manufacturers are busy looking at their 5 years plans, now that they have another "Apple" style competitor, even though they use the Android software. The fact that Google bought the company outright with a great big cheque just shows the reserves that some of the big internet players have to change the landscape.

So is Nokia quietly chatting with Facebook, who have talked about a phone scenario recently. Will Samsung discuss options with LinkedIn? What about LG and Microsoft? The "what ifs" and synergistic connections on a global scale are endless. Seems the software gang are thinking there is still life in the manufacturing world as long as they have the total distribution rights and that is accomplished by buying the manufacturers.

No doubt Google saw the success that Apple is having with its own closed circle of providing the software to its own distribution tool, the iPhone. The distribution model has been around for a long time in other industries from car manufacturers owning rental car companies to airlines owning holiday wholesale companies. Yet many of those examples have ended up going back to core product after many years of finding out the small margins in manufacturing and the logistical issues were too much and just because you have a lot of spare cash does not mean you need to spend it.

The plight of the US debt and the government's cash problems have highlighted some interesting facts, with one being, Apple now has more money in the bank than the US Government. Aside from an astounding fact and that companies are becoming the new countries, everyone is asking Apple what they intend to do with all that cash.

They already own a phone company, a computer company, a music company and a software company and all of those seem the quickest way to print money nowadays. So what's missing? I remember reading that Steve Jobs wanted to turn the whole world into a WiFi free zone so that everyone could communicate from anywhere they carry a phone or tablet. Not too far fetched when you think about the next step that Apple could take in their globalisation and turning everything into "iWorld".

What if Apple has enough money to buy a global telecommunications network? How much do those satellites cost? Surely the US Government could use some cash as they no doubt have satellites to sell. What about Europe? What if Apple could solve the debt crisis of many EU countries by buying their communication networks? What if Apple then closed the system and all the world's iPhones ran on one network?

Would you buy an iPhone if the calls were free? How many phones and Apps could Apple sell if that were the case? It seems far fetched but 10 years ago none of what we are talking about seemed remotely possible.

So if everyone had access to free calls on iPhones only, the $12.5 Billion Google just spent on Motorola could be just the first stage of acquisitions for them, that may need to include a global network.

What if?