It was my understanding that the Motorola purchase was solely about acquiring patents, and did NOT include the hardware side of the business at all.
The other two might be that they are making so much less money on every device they sell than Apple. It could possibly become a reasonable source of revenue (Google almost always talks about market share of Android, not the revenue).
The last thought, is the big picture of utilizing the emergence of tablets to become a predominant player in the industry. Beyond search. And somehow surpass Microsoft and Windows as the omnipresent platform. That seems really tough.
Time will tell.
Third quarter numbers: http://files.shareholder.com/downloads/ABEA-58XVPR/165679343...