In an unexpected turn of events, the Search giant Google has handed Motorola’s mobility division to a Chinese tech company Lenovo for a mere $2.91 Billion.
Google acquired Motorola including its patents and trademarks in 2011 for $ 12.5 Billion and is was thought to throttle Motorola’s smartphone market. But despite Google’s management and funds, it didn’t help the Company’s position in the market.
Under Google’s umbrella however, Motorola has released a few new smartphones such as the highly customizable Moto X and a cheaper version of it the Moto G. But even with high marketing budget, Google failed to entice customers to look into these Motorola devices.
Now, Lenovo came in to take the Company’s mobile division with the hopes for solidifying its foot-hold in the US. It has been a failure for Lenovo to stand in the US with its smartphone devices which faces a lot of competition from other manufacturers such as Apple and Samsung which dominates in these areas.
Lenovo has always been one of the top PC manufacturer in the world but failed to capture the hearts of potential customers in the mobile market. Its acquisition of Motorola may potentially enhance its mobile business not only in the US but for the rest of the world where Motorola’s brand had or has been known.
Though Lenovo may have acquired Motorola’s Mobile division and market its future devices under the Motorola badge, Google still has its full rights to its major patents which accounts for at least 2000 patents from its acquisition in 2011.
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