GOOGLE BUYING MOTOROLA MOBILITY

Google has announced it is acquiring handset maker Motorola Mobility for $40 per share or $12.5 billion. Google will making Motorola Mobility a "dedicated Android partner" to "enhance competition in mobile computing" and "supercharge the Android ecosystem." Google CEO Larry Page said "Motorola Mobility's total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers."

The acquisition also give Google access to Motorola Mobility's treasure chest of patents which it can use to help defend itself against lawsuits.

Motorola Mobility has been a strong Android partner to Google and launched the flagship Droid lineup for Verizon. Google will continue to operate its new toy as a separate business and not morph it into an in-house hardware wing.

MICROSOFT MAKES MORE MONEY FROM ANDROID THAN ITS OWN WINDOWS PHONE

According to a report by Citi analyst Walter Pritchard, Microsoft may be making more money off Google’s Android operating system than it makes off its own Windows Phone platform, five times more, in fact. Pritchard states that as a result of a patent settlement, HTC is required to pay Microsoft $5 for every Android phone sold.

Analyst Horace Dediu estimates that HTC has sold 30 million Android smartphones to date, which adds up to $150 million in the bank for Microsoft. Dediu notes that Microsoft has reported Windows Phone sales totaling 2 million licenses to date, and he estimates the company’s license fee to be $15 for a total of just $30 million.

Pritchart notes that Microsoft is currently suing other Android phone makers for infringements on the company’s intellectual property, and is seeking between $7.50 and $12.50 per device sold. As much money as the company is making on sales of HTC’s Android phones, it’s easy to see why Microsoft is pursuing other cell phone makers with similar suits.

BALLMER SAYS OVER 500 NEW FEATURES IN WP7 'MANGO' UPDATE

Steve Ballmer revealed the Windows Phone 7 'Mango' update will have "over 500 new features" in a speech over in Japan today, where he also said that additional information about "who's going to be building Windows Phones" will be forthcoming at tomorrow's preview event as well. Combine that with an otherwise unsubstantiated rumor about Microsoft showing nine new Windows Phone handsets tomorrow, and it does seem like there'll be fresh hardware to go with the ripening software.

Neither the Mango release nor any devices on show will be coming to market any time soon, mind you, but it's nice to think we'll get to see what the future of Windows Phone will look like in physical as well as digital form.

ENTRY LEVEL ANDROID HANDSETS TO TOP 20 MILLION IN 2011

Budget Android handsets are poised to takeoff in 2011, a new report from Digitimes suggests. The firm states that it expects 20 million to 25 million entry-level Android handsets – defined as devices priced below $150 – will be sold globally in 2011. That figure is up from the 2.5 million to 3 million that were sold in 2010. Digitimes suggests that chips designed in China and Taiwan will drive white box OEMs to create budget-conscious handsets that will be attractive in emerging markets. An estimated 10 million to 13 million of those handsets are expected to be sold in China alone. Digitimes is known for having a mixed track record, but we do know that Android handsets — such as LG’s Optimus — were priced in the $100 range on many U.S. carriers.

RUMOR: MASSIVE EXECUTIVE SHAKE-UP AT NOKIA

German newspaper Wirtschaftswoche is reporting newly appointed Nokia CEO Stephen Elop is executing an executive shake-up. Citing "company sources," the paper stated that Mary T. McDowell, a bigwig in the mobile phones unit, as well as Niklas Savander, the manager of the markets unit, could be on the outs. Moreover, Kai Oistamo (Chief Development Officer) and Tero Ojanpera, the manager responsible for services and mobile solutions, may also be joining them in the unemployment line.

Nokia has reportedly hired headhunters to find replacements for those empty positions. It appears the organizational changes are focused on rectifying Nokia's inability to quickly execute upon its corporate strategy.

This shift comes after Nokia recently laid off 1,800 workers in October.

RUMOR: SONY ERICSSON WORKING ON WINDOWS PHONE 7 DEVICES

Contrary to what beleaguered handset manufacturer Sony Ericsson has stated, they seem to be deeply invested in Windows Phone 7 OS. According to DigiTimes channel checks with Taiwan-based manufacturers reportedly reveal that Sony Ericsson does indeed already have Windows Phone 7 devices “in the pipeline,” despite the fact that executives have been careful with their words in recent history when discussing the platform. DigiTimes’ report does not include any information as far as specific devices, nor does it indicate when we might see new Microsoft-powered phones reach market from Sony Ericsson.

SPRINT TO OFFER PRE-OWNED DEVICES

Bargain hunters take note. Sprint has launched a program that will allow people to buy "certified pre-owned" devices.  As the press release explains: " “Sprint Certified Pre-owned devices offer customers exceptional, feature-rich refurbished devices at lower prices. Customers who purchase a pre-owned device from Sprint not only get one of today’s devices at a great value, but also simultaneously help Sprint to achieve its aggressive reuse and recycling goals by giving these pre-owned devices a ’second life."

Some of the handsets being touted in the annoucement are the Blackberry Tour ($80), Samsung Reclaim and Sanyo 2700 (both $50).  Sprint states all handsets are "thoroughly inspected, tested and, if necessary, remanufactured according to original equipment manufacturer new unit specifications” and come with the standard 30-day return policy.  This program from Sprint comes on the heels of Verizon's own similar program. [BGR]