Lenovo Buys Motorola Phone Division


Chinese laptop king makes a play for the mobile space.

The Chinese manufacturer Lenovo is on a shopping spree. A week after acquiring the IBM x86 server division, Chinese PC giant has also purchased the mobile phone manufacturer Motorola Mobility from Google. The price for Motorola Mobility is reportedly around US$2.9 Billion; Google will retain ownership of Motorola's patents, as well as the Motorola advanced technology division.
Google announced the purchase Motorola's Mobile Device Division in 2011 and completed the purchase in 2012. At the time, experts speculated that the real prize was Motorola's 17,000 patents, which Google would need for the coming storm of patent battles with Apple, Microsoft, and other rivals. Nevertheless, Google insisted that it really did want to make smartphones, and the company made serious attempts to retool and refocus Motorola's development efforts.
Strategies and fortunes change fast in the smartphone market, and Google apparently saw its fortunes leading elsewhere. By keeping the patents and the advanced technology division, Google retains the components it considers most essential for the future. Still, many analysts are describing the sale as a fiasco for Google. The deal will bring in $2.9 Billion for Google after they paid US$12.5 Billion for the full package 22 months ago.
Some significant losses in courtroom and marketplace apparently convinced Google to bail out of the daily grind of the low-margin smartphone hardware business to focus on Android OS and the phenomenally successful Internet search business.
Meanwhile, Lenovo has significantly broadened its product base in recent weeks, spreading from its business client roots to both the server room and mobile arena.

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