• BusinessWeek, Tuesday, May 22, 2012 1:25 PM

On word that Google has finalized its acquisition of Motorola Mobility, Web watchers are taking a fresh look at the deal, what it means for Google, and the future of mobile. Confirming many a suspicion, Dennis Woodside, the newly appointed head of Motorola Mobility, says Google plans to use the division to produce smartphones and tablet computers that can help Google set the pace of innovation in the mobile business.

“This is a huge opportunity to really show what Android can do in a well-designed, well-packaged, and well-marketed product,” Woodside tells Bloomberg Businessweek. It’s “a huge gamble,” according to the news service. “The search giant became a household name and one of the most profitable businesses ever by sticking to online services and software. Now it will have to figure out the cutthroat, low-margin world of hardware.”

Worst-case scenario, Bloomberg Businessweek suggests that the strategy could even slow what it calls “the remarkable rise of Android.” Why? In part, device makers have been willing to embrace Google’s mobile operating system because the search giant wasn’t a direct competitor. Getting into the device game makes it enemy No. 1.

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