In a much unexpected move, Google has sold Motorola Mobility to Chinese Giant Lenovo for $2.91 million dollars. Larry page stated the reason for this step was the fierce competitive Smartphone market which requires a lot of attention and energy – something Google sees as a diversion. Google wants to spend all that energy in further developing and penetrating Android eco system.
Larry Page, Google CEO, also stated “The dynamics and maturity of the wearable and home markets, for example, are very different from that of the mobile industry. We’re excited by the opportunities to build amazing new products for users within these emerging ecosystems”
Google bought Motorola for $12.5 Billion two years ago and the selling price of $2.91 billion dollars might indicate a massive loss, but the numbers can be misleading. Google still retains the $5.5 Billion worth of patents, which was the reason Google acquired Motorola in the first place.
“We acquired Motorola in 2012 to help supercharge the Android ecosystem by creating a stronger patent portfolio for Google and great smartphones for users. Over the past 19 months, Dennis Woodside and the Motorola team have done a tremendous job reinventing the company.”
Google also sold home division of Motorola to Arris Group for $2.35 billion and sold Motorola’s Chinese and Brazilian assembly plants to manufacturer Flextronics for about $75 million. Google also suffered some operational loss while reinventing Motorola. So taking everything into account, it’s hardly a hefty loss for Google.
Google will also retain Project ARA, an ambitious project aimed towards providing modular cell phones. The project team will merge with Google Android division. If the project becomes a reality, you will be able to replace and upgrade specific parts of your device hardware without having to opt for an entire new phone.
What it means for the future of Moto G?
The Moto G is all set to arrive in India and is among the most awaited smartphones as of now. The disassociation from Google will make it loose some Panache, but it will work well for the device. Lenovo has a well established distribution and after sales support in India and this will be a vast advantage for Moto G setting foot in India.
The device already runs on Android 4.4 KitKat operating system and considering the close access Lenovo will now enjoy in Google’s world, we can hope for timely updates as well.
Lenovo earlier acquired IBM’s PC business and did not ruin the brand. It did some real innovative stuff after the acquisition and is expected to do the same with Motorola. With both companies joining hands we are only expecting better future at least for Moto G if not for future devices.