Lenovo finally completed the acquisition of Motorola for US $ 2.91 billion. However, only the Motorola mobile division course, Motorola Mobility, which was purchased by Lenovo.
This is one way of Lenovo, known as PC manufacturers, to be in power in the global Smartphone market. This acquisition means is a new chapter for Motorola.
Previously, Motorola Mobility has been bought by Google, but was unable to provide a significant profit. As a result, Google’s Motorola Mobility volunteered to be part of Lenovo. Google’s planned purchase of Motorola has been actually already on the Lenovo since January.
Motorola plans to change the direction of its business to provide supply and a low-cost distribution network to Lenovo. While Lenovo, through its CEO Yang Yuanqing, said several times if this year they hope to raise profits Motorola within four to six quarters after the acquisition is completed.
Launched by the Wall Street Journal, Saturday, November 1, 2014, Lenovo will operate Motorola as a subsidiary with offices in Chicago, under the leadership of President Rock Osterloh. While Lenovo Mobile Business Leaders, Liu Jun, will act as the supreme head of Motorola.
This is the time to do so where the Lenovo acquisition of several IT companies. In 2005, they had bought IBM’s PC business division and control of the PC business, Hewlett-Packard beat position of occupying the number one position in this business in previous years.
Along with the global PC business is declining, Lenovo is also looking for new sources of revenue by way of expanding into the Smartphone industry. They try to beat the dominance of Apple and Samsung in the global market.
Lenovo is now becoming one of the largest Smartphone vendors in China and began to increase its presence in Southeast Asia, Russia and other developing countries. The third quarter, Lenovo lined up to position number 4 in the global Smartphone market with a market share of 5.2 percent. This is a latest data from IDC, where Lenovo is under Samsung, Apple and Xiaomi.
Although Motorola currently has a market share of Smartphones are smaller than the Lenovo, Yuanqing sure if they can take advantage of Motorola’s success in the United States and other developed countries.
“We will take advantage of Motorola’s strong relationship with the telecommunications company in the world, the following are the copyrighted intellectual property they have,” said Yan Yuanqing.
After the acquisition, Lenovo confirmed that it will still let the logo embedded in the Smartphones which Motorola will sell them, rather than replace it with the Lenovo logo.
According to research firm Strategy Analytics, Motorola in the US market is still at 4.1 percent, the fifth highest among the other brands