Lenovo, the Chinese company which is best known for its personal computers has announced that it will be acquiring the Google’s Motorola Mobility Smartphone unit for $2.91 billion.Last week Lenovo had acquired the IBM’s low-end server business for $2.3 billion. Lenovo is on a buying binge of astounding proportions and the very fact that it has acquired the Google Smartphone subsidiary speaks of things to come.
The company was acquired by Google less than two years ago for a sum of $12.5 billion. Lenovo is a Chinese company which has been making rapid strides and in 2005 had left behind Hewlett-Packard and Dell to become the world’s biggest maker of PCs.
Gauging the changing trends of consumers who were leaning more towards buying smartphones and tablets instead PC, Lenovo seems to be focusing more on the latter, perhaps shying away from the PC market. The logic of Lenovo think tank is perhaps based on the fact that smartphones use a variety of chips in comparison to PC’s or servers. A number of these components are in fact contract manufactured by the same companies and Lenovo could hard press its suppliers if it has more products in its inventory.
Of course it is not a complete loss to the search engine giant if you consider facts like the sale of Motorola’s set-top box business and Motorola’s patents in 2012. So it is not correct that Google incurred a loss of $10 billion if you consider that it had purchased Motorola Mobility for $12 billion. Google may not have done badly after all.