Lenovo have take Motorola off of Google’s portfolio in a recent deal. What does this mean for the future of both companies?
Google Sell Motorola
Google have signed an agreement to sell their Motorola handset division to Lenovo for $2.91 billion dollars. Motorola was first bought by Google in 2012 with the intention of providing a boost for the Android ecosystem.
Since then, the people behind Motorola have created some impressive flagship smartphones (such as the latest Moto X and Moto G), and a a few more are expected throughout 2014.
Google claims that Lenovo “has the expertise and track record to scale Motorola into an important player”. While or not this is a nice comment to make in relation to the deal in question, it does not really explain the reasons behind such decision.
Why Did Google Sell Motorola To Lenovo?
Some journalists think that Motorola was used as a bargaining chip for the recent agreement between Google and Samsung, that would lead to a unification of mobile interfaces (basically getting rid of Samsung’s Touchwiz).
Selling Motorola would prevent Google itself from developing high-end mobile phones, lowering the competition between them and Samsung.
Google will be able to keep Motorola’s mobile patents and development team, leading to an increase in their shares of more than 2%. The deal will allow Lenovo to increase their presence in the mobile market allowing them to compete against Apple and Samsung both in Eastern and Western countries.
Lenovo Aim For Mobile Breakthrough With Motorola Tech
Lenovo is expected to make the best out of Motorola the same way they did when they acquired ThinkPad from IBM nine years ago.
Furthermore, Lenovo announced their intentions of buying IBM’s low-end server business in a near future.
All in all, although the deal is yet to be approved in U.S. or China, we think that it is fair to say that 2014 will be an interesting year for both Google and Lenovo. But we can also expect Samsung to increase its power as a phone manufacturer. All three companies will be growing and expanding their frontiers as the smartphone world keeps adapting to the needs of the masses.