Its just nearly a month
back Google sold its mobile manufacturer Motorola to the PC
and Smartphone maker Lenovo for $2.91 billion. With smartphones like Moto
G and Moto X being such a big hit in the market for a while, what is the reason
behind Google selling Motorola.
Here are the 5 reasons why Google sold Motorola.
1. Google's mobile strategy is to get Android onto as many phones as possible, as almost all of the company's revenue comes from advertising, including on mobile devices. This is very different from Apple, BlackBerry, and Microsoft, which are all now integrated hardware-software businesses.
2. Google wanted Motorola for the patents, not for the manufacturing. Apple's patent attack on Android licensees was slowing down and worrying Google's customers. Motorola had a massive patent library that can be used defensively.
3. Once Google bought Motorola, some of its major licensees started hedging their bets and developing or buying their own non-Google OSes: Samsung with Tizen and LG with WebOS, for instance. They were worried Google would compete directly with them.
4. Motorola never made Google any money even though Moto G is a big success.
5. By ditching Motorola, Google can be a neutral, honest broker of operating systems to the world and make money doing so.
Here are 2 main reasons why Lenovo bought Motorola from Google.
1. Lenovo is one of the world's top five smartphone makers, but its market share in the U.S., one of the world's largest smartphone markets, is zero. Motorola has an 85-year history in the U.S. and, at this point, pretty poor distribution elsewhere.
2. The company's biggest business is still PCs, and it's the world's No. 1 PC maker. But PC sales aren't growing. If Lenovo is going to be a technology leader in the late 2010's, it needs to be a mobile tech leader. Assembling a global smartphone business is key.
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