Thursday, January 30, 2014

Lenovo buys Motorola from Google




Lenovo has just bought Motorola Mobility from Google for $2.91 billion. The news came as sort of shock as there were no big rumors about Google selling Motorola, the company they bought in 2011 for $12.5 billion.

Lenovo is a huge company that is currently number one in pc sales and so this purchase of Motorola is pretty straight forward. They want to make a push in the smartphone market, so this is basically their best option. Motorola has been making smartphones for many years, they have both experience and name recognition.

But this move from Google was not expected, as the search giant is recently trying to develop their own hardware. Google Glass is a product that they have been testing lately, and their acquisition of Nest was also a step forward to developing smart household appliances.

So why would a giant company like Google sold their own smartphone division. They already make operating system for smartphones, the most popular OS in the world Android. Doesn't it make sense to control your own hardware and software, Apple is the best example for this winning strategy and even Microsoft is becoming more and more involved with developing their own hardware. Looks like Google might have shot themselves in the foot with this one.

Source technobufallo.

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