The news broke early this morning — Google is acquiring Motorola Mobility for around $12.5 billion. Motorola Mobility makes Android devices such as smartphones like the Droid and the Atrix as well as the Xoom tablet computer. According to Market Watch, Google  CEO and co-founder Larry Page said, “Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers.”

This news could really shake things up in the smartphone industry. If I were the head of HTC, for example, I might be concerned. HTC produced the first Android smartphone for the United States market — what eventually became the HTC G1. The company continues to produce Android smartphones along with devices that use other operating systems. According to Market Watch, Google executives say that Android will continue to be open — all handset and tablet manufacturers can choose the Android OS for their products. But if Google produces official Android devices under Motorola Mobility, what chance do these other manufacturers have? And it’s not just HTC that could be in trouble — Samsung and LG are heavily invested in the Android platform as well.

From a consumer standpoint, I’d be tempted to buy the official Google products before any other. That’s because I suspect the devices Google and Motorola Mobility produce together will be Android-optimized in a way that other devices can’t match. Plus, whenever Google updates the Android OS I suspect it will come to the Google phones and tablets first, leaving the owners of other devices waiting for months or longer to get up to speed. Some of that also depends upon the cell phone service provider.

And what impact will this have on the ongoing patent wars between Android handset manufacturers and Apple? Recently, Apple has brought lawsuits against companies like HTC, Samsung and Motorola claiming violations against Apple patents. Could Google’s move signal that the company is preparing to fight back? Might HTC and Samsung draw the conclusion that Google is backing one company while cutting the other two loose?

Back when I wrote How the Google Phone Works, Google executives claimed that the company had no interest or plans to build its own hardware. With this acquisition hitting the news, it looks as if things may have changed. What do you think? Is this a smart move for Google or did the company just burn bridges with other handset manufacturers?