New Delhi: There are many users who know that Lenovo and Motorola are the same company, but there are some users who will ask why Lenovo acquired Motorola, and what was the real reason behind this deal. So in this article, we are going to discuss this matter. Before buying Motorola, Lenovo was one of the best PC manufacturers globally, which means they were on top, but they not only wanted to be in PC, they wanted to go far beyond PC At that time, they decided to take a step into the smartphone market. Lenovo agreed to acquire Motorola, but there is also one question: why only Motorola? They could also choose another smartphone brand.
The reason behind acquiring Motorola Mobility was that it was on sale at that time, because Google was looking to sell Motorola Mobility after acquiring it in 2012. Google kept most of Motorola’s patents but sold the hardware business. Despite all of the struggles, Motorola had tremendous brand equity and history as a mobile phone pioneer, which made it more valuable than starting from scratch or buying a lesser-known brand. Lenovo was already successful in China, but they are weak in the Western markets. Motorola provided immediate credibility and market presence in these regions. So, this was the only reason why Lenovo acquired Motorola Mobility from Google in 2014 for about $2.9 billion. And also, Lenovo wanted to gain an immediate entry into the North American, Latin American, and Western European smartphone markets.
Motorola was a well-known name, with the tier one brand, which literally saved Lenovo the time and immense marketing costs of building the latest brand from scratch. This was the proven strategy for Lenovo, which had previously acquired IBM’s ThinkPad business to enter the high-end PC market. With the PC sales flattening, Lenovo saw the mobile market as the next frontier for growth. Acquiring Motorola was the strategy to capitalise on the rapidly expanding global demand for smartphones. Though Google kept the majority of Motorola’s patent portfolio, Lenovo acquired a license to use the patents and received over 2000 patent assets. This provided intellectual property protection and boosted Lenovo’s research and development capabilities in mobile technology. And now the results are in front of you all that Motorola has now become one of the best smartphone brands in the foldable, in the budget segment, in the mid-range, they have captured the overall pricing segment, and the service of their smartphone has improved. This was all about the Lenovo and Motorola.
