This is interesting because we in Nigeria and other African countries have found Chinese brands like Tecno and Gionee quite revolutionary in terms of giving people cheaper access to smartphones...
Lenovo to buy Motorola Mobility from Google for $2.91 billion
Lenovo Group said on Wednesday it agreed to buy Google Inc's Motorola
handset division for $2.91 billion, in what is China's largest-ever tech
deal as Lenovo buys its way into a heavily competitive U.S. handset
market dominated by Apple Inc.
It is Lenovo's second major deal on
U.S. soil in a week as the Chinese electronics company angles to get a
foothold in major global computing markets. Lenovo last week said it
would buy IBM's low-end server business for $2.3 billion.
ends Google's short-lived foray into making consumer mobile devices and
marks a pullback from its largest-ever acquisition. Google paid $12.5
billion for Motorola in 2012. Under this deal the search giant will keep
the majority of Motorola's mobile patents, considered its prize assets.
of Google climbed 2.6 percent to about $1,136 in after-hours trading.
Google Chief Executive Officer Larry Page said that Google would be best
served by focusing on smartphone software rather than devices.
Reuters reported the deal earlier on Wednesday, citing sources familiar with the deal.
purchase will give Lenovo a beach-head to compete against Apple and
Samsung Electronics as well as increasingly aggressive Chinese
smartphone makers in the highly lucrative U.S. arena.
Lenovo muscled its way into what was then the world's largest PC market
by buying IBM's personal computer division. It has powered its way up
the rankings of the global smartphone industry primarily through sales
on its home turf but had considered a U.S. sortie of late.
Motorola, just as Lenovo used the IBM ThinkPad brand, to gain quick
credibility and access to desirable markets and build critical mass
makes a lot of sense," said Forrester Research analyst Frank Gillett.
Motorola has not been shooting the lights out with designs or sales
volumes in smartphones. So the value is simply in brand recognition to
achieve market recognition faster - and to expand the design and
marketing team with talent experienced at U.S. and Western markets."
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