announced today, Lenovo is to buy MOTOROLA for a cut price of $3 bn from Google.
The $2.9 bn sale price is just a fraction of what Google paid for it in 2012.
includes Motorola Mobility's portfolio of smartphones - Moto X and Moto G and
DROID Ultra series.
Motorola is the No. 3 Android smartphone brand in its native U.S.
of the brand it purchased for over $12 bn 18 months ago,
shows it made a gamble on hardware, that didn't pay off.
But hey, at
least it has Moto's massive patents portfolio, which it is holding on to.
in it for Lenovo, the world's biggest PC maker, (according to recent figures)?
giant will gain a strong market presence in the US and Latin America with the
Motorola brand, as well as a foothold in Europe, adding to its-growing
smartphone business in emerging markets, it said in a statement.
Lenovo is the No. 4 smartphone brand globally, behind Samsung, Apple and Huawei, analysts IDC
said this week.
"Lenovo, despite having no
presence in North America nor Western Europe, finished the quarter in the
number four position. The company's strength lies in its strong presence within
key emerging markets and a well-segmented product portfolio spanning from
simple, affordable smartphones to full-featured 5" screen models. Should
[the company] become successful at branching into more developed markets in
2014, it could challenge Huawei for the number three spot," IDC said.
Ovum analyst, agrees the acquisition will boost Lenovo's marketshare in the US
but warns of "challenges" including scaling and security concerns.
acquisitions does give Lenovo some traction in the enterprise market in North
America but they will still face the same challenges of scaling and security
concerns. The patents could prove to be valuable in the long run."