In a move that was quite surprising for most, disturbing for many, and pleasing for some, Google and Lenovo have shaken hands to make a deal, according to which Google will be selling the phone business of Motorola to Lenovo, the famous Chinese laptop maker. Though it’s not really Android saying goodbye to Motorola, a large part of Android fans maybe disappointed by Google selling out Motorola.
This deal involves Google selling the Motorola’s hardware business to Lenovo for $2.91 billion. Google had earlier acquired Motorola Mobility for $12.5 billion in 2012, which was marked to be a strategy from the internet giant to acquire the large portfolio of patents that Motorola held.
The smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices. It’s why we believe that Motorola will be better served by Lenovo.
This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.
- Larry Page, CEO, Google
Many have speculated that the main reason behind this deal was Samsung. From the time Google acquired Motorola, the relationship between Google and Samsung seemed to a bit strained, with Samsung promoting its mobile operating system Tizen as a competitor for Android and iOS, and putting Android to be of lesser priority in its list.
Some others claim that this was just another tactical move by Google, as Google hasn’t actually sold all the patents Motorola owned. Google will hold the rights to around 20,000 patents which they acquired via Motorola, which comes to be of a value of $5.5 billion. Though Google did get some hits financially after acquiring Motorola, recent signs had seen Motorola heading a positive direction in the minds of the smartphone users, with Moto X and Moto G catching a wide range of enthusiasts. Only time can tell whether Lenovo will be able to carry forward this positive pulse.
Lenovo, which is the No. 1 PC manufacturer in terms of the volume, and is already one among the top five smartphone manufacturers in the world can now hope to make a better stand in the global smartphone market, as The Times of India reported.
It is also worth noting that the shares of Lenovo took a fall by 8.71% and that of Google rose by 2.5%, showing a net positive reaction in the market for the deal. It is also to be noted that now Samsung, Apple and Nokia will be having another strong competitor in the rings.
Let’s wait and see how all of this turns out!