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Lenovo will use Motorola's name to enter the US smartphone market

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According to the Verge’s article (by Jacob Kastrenakes), Google sells Motorola to Lenovo. This is "just in time" information, as we have learnt that Lenovo bought x86 server business from IBM quite recently. This seems that there will be a new – huge – player on the IT hardware market. Lenovo will be able to cover the following market sectors: x86 servers, smartphones and, thanks to the deal from 2005 when Lenovo acquired ThinkPad business from IBM, they currently are doing quite well with their notebooks. So, what exactly we can read in the Verge’s article to update our yesterday thoughts?

 

Straight at the beginning we can read the numbers and realize the Lenovo’s strategy – to enter the US smartphones market. Honestly, this is a huge market and it will have a serious impact on the other parts of the world. This is important especially from the Android OS point of view. However, there is another issue behind the deal – at least some of the patents:

 

[…]

Google is selling Motorola Mobility to Lenovo, giving the Chinese smartphone manufacturer a major presence in the US market. Lenovo will buy Motorola for $2.91 billion in a mixture of cash and stock. Google will retain ownership of the vast majority of Motorola's patents, while 2,000 patents and a license on the remaining patents will go to Lenovo. At the deal's closing, Lenovo will pay Google $660 million in cash and $750 million in stock, while the remaining $1.5 billion will be paid out over three years.

[...]

 

It’s good to remember that – as we can read in the article:

 

[…]

Google initially bought Motorola Mobility for $12.5 billion back in 2012, but it said at the time that it was mainly interested in the company's patent portfolio.

[...]

 

A really interesting period. Seems that now we have Lenovo, which can enter the market directly related to cloud computing services with their Android-based smartphones (end-user perspective), branded with recognizable Motorola name, and x86 servers which we will probably see in our data centers quite soon (let’s say – this is an important part of cloud backend infrastructure). On the other hand, we have Microsoft which is cooperating within Facebook’s Open Compute Project to provide alternative, cost-effective data center infrastructure solutions.

 

Google will sell its Motorola handset division to Lenovo, and retain the majority of its patents – as presented by NewsyTech channel on YouTube

 

When we see the changes in broader perspective – there is a question about Windows Phone operating system and the strategy behind the Nokia’s smartphones, as well as wider adoption of Microsoft technologies? Currently, this seems that forthcoming period will be characterized with significant competition. The cloud services market is just behind all changes too, as I believe. Therefore, the question is – why IBM decided to focus on their huge servers market and, as it was said, lucrative consulting business, including cloud computing services? For sure, each important player has its own strategy. Soon, we will find out who was right.

 

 

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