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Lenovo to buy Google's Motorola handset division

reuters.com

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Re: Lenovo to buy Google's Motorola handset division

#111

Very odd news. Was looking forward to seeing what Google could do with their weight thrown behind hardware.

And they're off to a good start with the Moto X and Moto G. I don't really understand why they'd want to sell Motorola now.

Because they aren't actually off to a good start.

Re: Lenovo to buy Google's Motorola handset division

#112
post #13

Earlier quoted context omitted.

> It's also a big statement on Google's ability to succeed in the hardware market, where they've never seemed to be able to gain real success despite their attempts with notebooks and phones. And Google TV. Let's not forget that huge failure. "By the summer of 2012, the majority of the televisions you see in stores will have Google TV embedded in it." -Eric Schmidt

A year off and the name is different, but Chromecast has redefined the way I think about 'Smart TVs' and HTPCs. Google's long game still looks good in this area, IMO.

Agreed. We think this approach is brilliant and suggests Google sees the TV as merely another screen. Chromecast combines the web dev model with the processing power of PCs (and mobile devices), making it a more flexible and powerful way to reshape the TV as another computing endpoint. Most importantly, Google innovation no longer is constrained by TV manufacturers and their divergent interests. Here's a Google game console: screen (TV) + processing (PC) + controllers (mobile device).

Re: Lenovo to buy Google's Motorola handset division

#113
post #13

Earlier quoted context omitted.

> It's also a big statement on Google's ability to succeed in the hardware market, where they've never seemed to be able to gain real success despite their attempts with notebooks and phones. And Google TV. Let's not forget that huge failure. "By the summer of 2012, the majority of the televisions you see in stores will have Google TV embedded in it." -Eric Schmidt

> And Google TV. Let's not forget that huge failure. Not to mention http://en.wikipedia.org/wiki/Nexus_Q

I dunno, the Q was pretty brilliant as a piece of performance art.

Re: Lenovo to buy Google's Motorola handset division

#114
post #7

Huge announcement if true, and if this accounts for the entirety of the Motorola purchase that Google made. That means that in less than two years, Google shredded 85% of the $13bn paid for Motorola. At the time, the high price paid was excused for the patents, because the business itself did not generate nearly enough earnings to justify the price. Now, if it is true that the patents are part of the deal (the articl…

Google may not be able to keep all the tax losses. It was originally reported that google would save $700M a year through 2019.* I'm not sure that they those losses are severable from the rest of the company.

* E.g. http://www.reuters.com/article/2011/08/31/us-motorolamobilit...

Re: Lenovo to buy Google's Motorola handset division

#115
post #7

Huge announcement if true, and if this accounts for the entirety of the Motorola purchase that Google made. That means that in less than two years, Google shredded 85% of the $13bn paid for Motorola. At the time, the high price paid was excused for the patents, because the business itself did not generate nearly enough earnings to justify the price. Now, if it is true that the patents are part of the deal (the articl…

Seems surprising that they have to sell the whole Motorola division for less than they bought this little company Nest for.

Re: Lenovo to buy Google's Motorola handset division

#116
post #13
post #7

Huge announcement if true, and if this accounts for the entirety of the Motorola purchase that Google made. That means that in less than two years, Google shredded 85% of the $13bn paid for Motorola. At the time, the high price paid was excused for the patents, because the business itself did not generate nearly enough earnings to justify the price. Now, if it is true that the patents are part of the deal (the articl…

> It's also a big statement on Google's ability to succeed in the hardware market, where they've never seemed to be able to gain real success despite their attempts with notebooks and phones. And Google TV. Let's not forget that huge failure. "By the summer of 2012, the majority of the televisions you see in stores will have Google TV embedded in it." -Eric Schmidt

Smart TVs aren't a failure yet - I hope Google keeps their plans going. It'll be pretty much like Microsoft's Xbox...

Re: Lenovo to buy Google's Motorola handset division

#117
post #67
post #7

Huge announcement if true, and if this accounts for the entirety of the Motorola purchase that Google made. That means that in less than two years, Google shredded 85% of the $13bn paid for Motorola. At the time, the high price paid was excused for the patents, because the business itself did not generate nearly enough earnings to justify the price. Now, if it is true that the patents are part of the deal (the articl…

This graph[1] tells some of the story, but the bigger story was they failed to capitalize on the patents, and even got fined by a jury for trying to abuse FRAND patents on WiFi and H.264. http://static1.businessinsider.com/image/52605103ecad0479335... http://m.computerworld.com/s/article/9242129/Microsoft_wins_... Edit: The timing is very interesting too. Google reports its quarterly earnings tomorrow, and was known…

Increasing the price of a phone that "hasn't been selling well"? Doesn't seem like a good tactic to me (if they currently sell them at a loss, it would be an improvement, but it would be more cutting your losses than being a success)

Luckily, by the time the acquisition completes, those phones will be obsoleted by newer models ('completes' will take months, if not years)

Re: Lenovo to buy Google's Motorola handset division

#119
While many seem to predict doom and gloom here, perhaps Google decided it rather gets an extra ally (Lenovo) that could produce Android phones and recoup some money they spent on the acquisition in the process? It also clears Google of any hints of favouritism towards Moto and frees up a lot of resources. I don't think Google knew what to do with a mass-producing phone manufacturer (plus its IP) under its direct control, just like a cat staring at a ball of yarn, swatting at it for some time, before running off to do something else. Verticalisation used to be the bees-knees and has a lot of lock-in potential, but I don't think that's where Google's ambition lies, I feel like it was weighing them down.

Google seems to have found a new niche to explore, though. It seems to have circled the 'Internet Of Things' on their todo list quite clearly and seem to be taking no risk of arriving late to the party. In a sense, what Apple did earlier to secure its iPhone launch, is what Google is doing now wrt the IOT. That and the smartphone market seems to be slowing down to a point of maximum saturation. Then there's not much to do for Google with a mid-tier phone manufacturer under its belt with ever decreasing margins. On the other hand, who would be a good ally to have when you were interested in the Internet Of Things? Maybe some manufacturer which produces everything from smartphones, washing machines, TVs to tanks and ships, and which coincidentally also happens to be the biggest Android manufacturer? A slightly cynical me perhaps even sees the Motorola sell-off as some sort of token sacrifice to ease all worries on both sides of the 10 year patent deal (I could imagine Samsung not releasing Tizen as a smartphone OS to compete with Android, but perhaps use it as a basis for IOT-related appliances, whatever those might be, and complement Android rather than fight it).

But that's all speculation from my side, but to be honest, I was yearning for some new technology developments, most of the land has been claimed in the space of smartphone technology and most of the battles taking place nowadays seem to be patent trolls and patent bullies doing what they do best: stink it up for everyone involved.

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