Google gives up on Motorola; Lenovo buys

Google has finally given up on its smartphone manufacturing arm Motorola Mobility after more than a year of investment. Motorola has been continuously losing money which is an unhealthy sign among investors and Wall Street analysts. Chinese PC authority Lenovo bought the deal for $2.9 billion saying that they are confident that the merger of the two brands possesses huge potential to bring customers’ needs and desires in a smartphone. In 2012, Google invested $12.5 billion to Motorola but realized that it should focus on developing Android application designs instead.

Google CEO Larry Page, on his blog post, instantly admits that it does not make sense for the company to try making its own line of smartphone and that patent issues are always a possibility in such a competitive market. In contrast, Lenovo is confident to achieve a similar success with Motorola even if they intend to maintain the latter’s branding. Lenovo made a distinct mark in the Android market being the fourth largest mobile distributor after Apple, Samsung, and Huawei.

Google will still maintain a larger portion of Motorola’s patent and is willing to follow Apple’s footsteps when it sued Samsung for patent violations. Similarly, Google earlier sold Motorola’s cable box business to Arris for $2.3 billion last year. The giant Android developer has been doing well with after-hours trading rising to 2 percent. Google also expressed its interest to buy-out home appliance maker, Nest, for $3.2 billion. Page added that the potential of home appliances appear to be more promising than manufacturing smartphones.

Two of Motorola’s smartphone units include Moto X and Moto G. Unfortunately, it was not successful in creating a breakthrough in the Android market. Lenovo leader Yang Yuanqing said that the purchase will significantly advance the company’s global position in the world of smartphones. Lenovo is positive to carry Motorola in its pursuit to make 100 million mobile sales annually. The company also announced a $2.3 billion transaction with IBM’s low-end x86 server business.

Google is an American international company specializing in Internet-related services such as computing, online marketing, and software development. Motorola Mobility is the cellular phone division of Motorola; a telecommunications company based in Chicago. Google acquired a portion of Motorola Mobility’s shares August of 2011. Lenovo is a Chinese technology company based in Beijing. It is the largest PC distributor following its purchase of the brand from IBM.

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