Moto deal adds punch to LENOVO: Experts

Moto deal adds punch to LENOVO: Experts

Posted by Unknown on Thursday, 30 January 2014 0

According to experts, Google's offer of cellular phone maker Motorola Mobility to Chinese firm Lenovo guarantees to reinforce Apple's competition globally.

The US Internet giant on Wednesday consented to offer Motorola to Lenovo for $2.91 billion, a dreary two-year later exertion to turn around the cell phone manufacturer it purchased for $12.5 billion.

What may show up on the surface to be a cash losing screw up by Google could really play out as a wise move tightening securities with partners who make Android cell phones and furnishing Lenovo ammo to test iphones and ipads in China and other pined for businesses.

The Motorola purchase furnishes Lenovo dependable balance in cell phone and tablet markets where it is enthusiastic to increase traction while going about as a peace offering to Samsung and different accomplices that make mechanisms controlled by Google-sponsored Android programming.

"It is win-win," said Tim Bajarin of Creative Strategies in Silicon Valley. " Google keeps the patents and the research group, and they keep partners off their back, while Lenovo gets what they need to get into the US smartphone market."

The offer of Motorola to Lenovo was published days after Samsung inked a long haul cross-licence bargain with Google to help the South Korean engineering firm fight off patent debates.

Google is keeping the patent portfolio accepted to have been its unique focus in the acquisition.

Samsung stands to profit from protection offered by Motorola patents, which investigators accept ended up being substantially less significant than Google suspected.

Very nearly all of Samsung's cell phones and tablet Pcs are fueled by the Google's Android programming, and Google's entrance into the handset coliseum with the buy of Motorola drove a wedge between the accomplices.

"The blend of a Samsung-Google peace settlement and Motorola set to Lenovo implies that Samsung has vowed devotion to Google's Android," Forrester investigator Frank Gillett told AFP.

"From Apple's perspective, Samsung will remain solid however tight with Google, and the desire of Lenovo to get like Samsung and to be considerably stronger in rising markets beginning with its position in China."

Silicon Valley expert Rob Enderle of Enderle Group suspects that Google might welcome Lenovo's versatile devices business developing enormous enough to balance the overwhelming position attained by Samsung in the matter of Android cell phones and tablets.

"Google was not content with Samsung owning the Android market," Enderle said.

Lenovo additionally seems resolved to throwing performer Ashton Kutcher, who played Steve Jobs on screen, in the part of an organization pitchman formed after people in general persona of Apple's notable founder.

" Lenovo is going to try to turn Ashton Kutcher into a Steve Jobs-type guy, and it is going to be fun to watch," Enderle anticipated.

Hollywood performer Kutcher wore a "Lenovo item designer" marker for a presentation before the end of last year in Los Angeles revealing a Yoga Tablet.

" Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem," Google CEO Larry Page said in a proclamation.

Lenovo administrator and CEO Yang Yuanqing said the obtaining " will immediately make Lenovo a strong global competitor in smartphones."

While Google will be taking a hit on the bargain, it sent off the Motorola Home division for $2.3 billion in 2012 and sold off some of its manufacturing facilities.

" Google got what they wanted and needed from Moto -- they got patents, engineering talent and mobile market device insight," said innovation expert Jack Gold.

" They don't need to be in the device business... This is a win for Google and a win for Lenovo in my opinion."
Analyst Ramon Llamas at research firm IDC said the arrangement still leaves a gap of about $7 billion for Google.

"Are the patents worth $7 billion? I don't have a clue yet that is a huge inquiry," Llamas told AFP.