Google's sale of Motorola Mobility to Lenovo will have many widespread consequences for the tech industry.
First of all, Google gained a lot from the deal. This includes not only the Motorola mobility patent portfolio, but also the profits from the successful Motorola phones that Google manufactured and sold in 2013.
Second of all, Lenovo's purchase will have implications for the smartphone market as a whole. As an already established player in China, Lenovo has the market know-how to succeed in the smartphone market, which makes it a credible threat to attack Apple and Samsung's stronghold on smartphone market share. In fact, according to CNN Money, Lenovo will soon be able to sell more than 100 million smartphones annually.
Third, since Google considers this a successful acquisition, this will embolden Google's future mergers and acquisitions, resulting in a bolder market strategy for the tech giant. We have already seen this come to fruition, with Google purchasing Nest for $3 billion.
Source: http://money.cnn.com/2014/01/29/technology/mobile/motorola-lenovo/
First of all, Google gained a lot from the deal. This includes not only the Motorola mobility patent portfolio, but also the profits from the successful Motorola phones that Google manufactured and sold in 2013.
Second of all, Lenovo's purchase will have implications for the smartphone market as a whole. As an already established player in China, Lenovo has the market know-how to succeed in the smartphone market, which makes it a credible threat to attack Apple and Samsung's stronghold on smartphone market share. In fact, according to CNN Money, Lenovo will soon be able to sell more than 100 million smartphones annually.
Third, since Google considers this a successful acquisition, this will embolden Google's future mergers and acquisitions, resulting in a bolder market strategy for the tech giant. We have already seen this come to fruition, with Google purchasing Nest for $3 billion.
Source: http://money.cnn.com/2014/01/29/technology/mobile/motorola-lenovo/
I will be interested to see how Lenovo breaks into the smartphone marketplace, with so many major players already established. Also, it will become clear what exactly Google gained from the patent portfolio if they ever end up suing Lenovo.
ReplyDeleteYou make an interesting point about Google suing Lenovo. I'm just wondering if that would ever happen since Lenovo is also an Android user.
DeleteHi Akshay! When I think about Lenovo, the first thing that comes to mind is their PCs, particularly the Thinkpad. Thus, I think it would be really interesting to see how Lenovo fares in the smartphone market place. When I read about the number of patents in the Motorola Mobility patent portfolio, I was amazed at exactly how many patents go into building a device (at least 24,000 patents and pending patents worldwide!)
ReplyDeleteReally enjoyed your commentary on the Lenovo situation. I didn't really pay as much attention to them because Google and Motorola are the more well-known companies. However, I think that it really buffers Lenovo's position by having acquired Motorola. They are already large in China and have been successful through acquiring companies in the past. I wonder how that aspect will play out in US manufacturers and whether there is increased pressure on them from Chinese companies like Lenovo.
ReplyDeleteHi Akshay, great job conveying the plus points of the Lenovo-Motorola acquisition. I find it interesting that Lenovo is trying their hand at cell phone manufacturing, especially at a time when Samsung and Apple are going neck to neck to sell hundreds of millions of devices annually. Some business decisions will always be beyond me, but it's intriguing to see how each company is thinking ahead with their own plans in mind.
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