SAN JOSE, Calif. (KGO) -- Google made its biggest acquisition ever Monday, buying Motorola Mobility for $12.5 billion. The implications are huge for everybody with a cellphone.
The acquisition is big because it puts Google in direct competition with Apple. Like Apple, Google will now make smartphones as well as the operating system that they run.
For consumers, the Google-Motorola deal is probably going to raise the bar for smartphones using Android. Google developed the Android operating system as open source, meaning any mobile phone maker can use it. More competition is likely to yield better devices.
"The hope is that the other manufacturers will say, 'Well, there's competition from Google, but we have to make ours better,' or, that they'll say, 'We are not going to mess around in terms of delivering operating system upgrades,'" CNET Executive Editor Molly Wood said. "That's been the big complaint is that you can buy three different phones with three different versions of Android."
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