Tags: lenovo | motorola | merger | cell phones

Lenovo, Motorola Merger: China Computer Giant Gets Cell Phones

By    |   Friday, 31 Oct 2014 07:16 AM

Lenovo and Motorola completed their merger on Thursday, making the cell phone company a wholly owned subsidiary of the Chinese computer giant.

"The iconic Motorola brand will continue, as will the Moto and DROID franchises that have propelled our growth over the past year," said a Lenovo blog post, which also emphasized that together, the companies "will continue to focus on pure Android."

Lenovo announced in February that it would purchase Motorola from Google, which acquired it in 2012.

"Under Google, Motorola has been one of the more exciting OEMs out there," wrote Ars Technica. "It produced the first round Android Wear device, the Moto 360, and great flagships like the Moto X. It made best-in-class low-end phones with the Moto G and Moto E, and now with Google it produced the Nexus 6."

Now that it's been scooped up by Lenovo, the world's number 1 or 2 laptop maker depending on the quarter, analysts expect Motorola will capitalize on its parent company's leviathan distribution network, in turn making for more competitive pricing.

Lenovo is famous for its low-margin laptop business, with the Think Pad being its most recognizable product. Motorola will likely benefit from going lower on the margins, and selling more to the masses.

When Google acquired Motorola a few years ago, it said it inherited roughly a year and a half's worth of product pipeline. Assuming the same is true for Lenovo, don't expect to see the laptop maker's true fingerprints on Motorola's products until the end of 2015.

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Lenovo and Motorola completed their merger on Thursday, making the cell phone company a wholly owned subsidiary of the Chinese computer giant.
lenovo, motorola, merger, cell phones
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2014-16-31
Friday, 31 Oct 2014 07:16 AM
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