Why Google Sold Motorola, and Why Lenovo Bought it
Lenovo purchasing Motorola's cell phone business from Google is an incredible arrangement for both organizations. Here's the reason.
Google sold the leftover of Motorola's cell telephone operations to Lenovo On January 29, 2014, getting the world's most dominant mobile OS organization out of the cellular telephone manufacturing business. This is a decent move for Google and a decent move for Lenovo, in spite of the fact that it may not be a decent move for buyers. Here's the reason Google and Lenovo are both walking away with a happy deal.
Why Google Sold Motorola
Way back in 1983, my first cell phone, the Motorola DynaTAC 8000X. The cost was $3,995. it was 13" tall and weighed 30 ounces.
Google's mobile phone strategy is to install Android onto whatever number telephones as would be prudent, as the majority of the organization's income originates from advertising, including on cell phones. This is altogether unique from Apple, BlackBerry, and Microsoft, which have all become integrated hardware-software organizations.
Google needed Motorola for the licenses, not for the manufacturing. Apple's patent assault on Android licensees was backing down and stressing Google's clients. Motorola had an enormous patent library that can be utilized defensively.
When Google purchased Motorola, some of its significant licensees began hedging their bets and creating or purchasing their own non-Google OSes: LG with WebOS and Samsung with Tizen, for example. They were concerned Google would directly compete with them.
Google never made any money with Motorola.
By dumping Motorola, Google can be a nonpartisan, legitimate intermediary of operating systems to the world and profit doing as such.
Why Lenovo Bought Motorola
Lenovo is one of the world's main five cell phone creators, yet its piece of the overall industry in the U.S., one of the world's biggest cell phone markets, is zero. Motorola has a 85-year history in the U.S. furthermore, now, really poor distribution other places.
The organization's greatest business is still PCs, and it is also the world's No. 1 PC creator. Be that as it may, PC sales aren't growing. On the off chance that Lenovo will be an innovation pioneer in the late 2010s, it must be a mobile tech leader. Amassing a worldwide cell phone business is critical.
Lenovo has experience incorporating and running U.S.- based technology organizations. It purchased the ThinkPad business from IBM and drove it to achievement, and it now owns a manufacturing plant in Whitsett, N.C. making Think-branded items.
Getting into the U.S. business sector is about associations with U.S. carriers. Motorola's connections are fantastically great: it has the ongoing Verizon Wireless Droid deal, and it's put the Moto X on three of four national carriers.
Lenovo doesn't simply want to be a consumer cell phone creator. It has exceptionally solid endeavor associations with its ThinkPad and ThinkCenter items, and it just purchased IBM's low-end server business. At this point additionally offering telephones, it can convey full innovation bundles to its U.S. business customers.
Motorola was instrumental in creating the industry of mobile communications
They invented many of the technologies and protocols which allow mobile communications to be possible, including the original mobile phone, the very first base site, and just about everything in between.
In August 2011, Google gained Motorola Mobility for US $12.5 billion. Google's expressed aim for the buy was to pick up control of Motorola Mobility's patent portfolio, so it could satisfactorily shield other Android merchants from lawsuits. The transaction closed in May 2012, after which it additionally sold its link modem along with the set-top box business to Arris Group. While under Google ownership, Motorola Mobility expanded its focus on the entry-level cell phone market, announced one of the first Android Wear smartwatches, furthermore started development on Project Ara, a stage for modular cell phones with interchangeable parts.
During the past eight decades, their engineers prospered on inventiveness and on
creating new ways to settle issues.