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Lenovo Snags Motorola for $2.9B

Google keeps lion's share of patents
1/30/2014 07:45 AM EST
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zeeglen
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Lenovo?
zeeglen   1/30/2014 12:11:28 AM
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At a previous position the management provided me with a brand new Lenovo laptop.

Damn thing kept popping up commercials for Lenovo crap in the midst of whatever I was doing.

As a result I will never buy a Lenovo...

John Bett
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Re: Lenovo?
John Bett   1/30/2014 2:16:08 AM
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You are right Zeeglen, previously I was also using a Lenovo Laptop and even its battery stability is very week, after using it for few days I had to charge ir after every 15 minutes of work. Because of which I brought a new Laptop of other brand.

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prabhakar_deosthali
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Re: Lenovo?
prabhakar_deosthali   1/30/2014 6:21:11 AM
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I am a very satisfied customer of Lenovo laptop. 

Even in 2005, when IBM laptops became Lenovo products, people were doubtful whether Lenovo would be able to maintain the same quality standard as IBM.

I think they have been successful in maintaining the brand value of the original IBM products  and now that they have bought the IBM's server business and the Motorola mobility business from Google - it indicates they are going to be the top notch company in Computer hardware and smartphones.

Anand.Yaligar
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Re: Lenovo?
Anand.Yaligar   1/30/2014 8:06:53 AM
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I am a very satisfied customer of Lenovo laptop. 

@prabhakar_deosthali, I am also user of Lenovo laptop and am very satisfied with its performance. I think Lenovo provides one of the best hardware features compared to other companies. 

Anand.Yaligar
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Re: Lenovo?
Anand.Yaligar   1/30/2014 8:25:26 AM
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I was also using a Lenovo Laptop and even its battery stability is very week, after using it for few days I had to charge ir after every 15 minutes of work.

@John, I am also regular user of Lenovo Laptop but I have never faced any issues related to battery. I have other brand laptops as well but Lenovo laptop gives me maximum battery backup.

qmwang
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Re: Lenovo?
qmwang   1/30/2014 1:34:09 PM
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I liked Lenovo laptop a lot. It is really sturdy and robust, and I didn't experience any battery issues. I have a couple at home, and one of them dropped to floor/downstairs a few times, but it is still running strong...

chanj0
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Re: Lenovo?
chanj0   1/30/2014 2:11:32 PM
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I rarely heard bad thing about Lenovo laptop in the States and the brand is popular in Asia for quality reason. I was surprise to hear all the complaints it in various comments. Nonetheless, there are always good and bad of a brand. i am sure there are good models and bad models.

GeeKv2
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Competition..
GeeKv2   1/30/2014 3:33:57 AM
Google has been very smart here. Even though it looks like Google has lost some money, I dont think it ever intended to make profit. Firstly, no Nexus devices were released by MM in the last 2 years which means that the hardware business was never taken seriously. It was very clear from the start that the patent portfolio was the reason for Google buying MM. Secondly, as Microsoft is known to follow the competition, it bought Nokia to enter the hardware business. Microsoft took the bait and will no doubt suffer and thats how you kill competition.

Anand.Yaligar
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Re: Competition..
Anand.Yaligar   1/30/2014 8:19:18 AM
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Google has been very smart here. Even though it looks like Google has lost some money, I dont think it ever intended to make profit.

@GeeKv2, true. But those patents haven't been as helpful as Google initially hoped. Google seems to have highly overvalued Motorola's portfolio, which hasn't been able to bring in nearly as much in royalties as either company seemingly expected.

GeeKv2
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Re: Competition..
GeeKv2   1/30/2014 8:24:37 AM
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Google has retained the patents from MM and has not sold them to Lenovo. So obviously patents are still relevant. 

See this: http://www.eetimes.com/document.asp?doc_id=1320796&

Anand.Yaligar
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Re: Competition..
Anand.Yaligar   1/30/2014 8:30:37 AM
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@GeeKv2, I never mentioned that Google has sold the patents to Lenovo. All I said was those patents didn't bring in nearly as much in royalties as either company seemingly expected.

GeeKv2
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Re: Competition..
GeeKv2   1/30/2014 9:00:42 AM
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How do you that Samsung has not paid enough to Google? That deal I pointed out could be worth several million dollars. Patent licensing is not a short term money maker. It takes a long time which Google is still working on since it still holds them.

resistion
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Re: Competition..
resistion   1/30/2014 10:03:28 AM
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For Google's sake, hope there are other Android-related licensees besides Samsung, who will not be killed off by Samsung (or even Apple) first.

zewde yeraswork
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Re: Competition..
zewde yeraswork   1/30/2014 11:49:04 AM
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Android-related licensees other than Samsung may be vulnerable at this opint....the pressure is on for Google as it makes this move. Lenovo is a bit more in the clear having spread out its interests in a number of markets now.  

Anand.Yaligar
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Re: Competition..
Anand.Yaligar   1/30/2014 12:53:06 PM
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@GeeKv2, Last year in the Microsoft v. Motorola patent case court ruled that Redmond owes a $1.7 million in annual royalties for using Motorola's standards-related Wi-Fi and video-encoding patents in every Xbox 360 and Windows 7 PC sold, rather than the $4 billion Motorola had originally demanded. This clearly shows that Googled overvalued the patents.

rick merritt
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Re: Competition..
rick merritt   1/30/2014 7:50:14 PM
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@Anand: So Google gets $1.7M a year from Microsoft alone for a couple of the Moto patents. That would suggest a mill/patent ain't too far off...or is something wrong with my math?

zewde yeraswork
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Re: Competition..
zewde yeraswork   1/31/2014 1:48:23 PM
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They sure do seem to be shelling out a lot of cash for not very many patents...this may be a better deal on Gooogle's end on closer inspection.

AZskibum
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Re: Competition..
AZskibum   1/31/2014 4:08:42 PM
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It was clear from the start that Google only wanted MMI for it's patents. Some may say Google overpaid for those patents, but I bet Google doesn't see it that way.

yuntou
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Quality of Lenovo Laptop
yuntou   1/30/2014 5:04:23 AM
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In China, in terms of quality, Think series is the top brand for corporate customers. Idea series is the top brand for home users. Every brand has poor quality issue statistically, but generally to say, I believe the quality of the laptops Lenovo shipped to US is for sure better than those shipped to China.

Kinnar
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A good hope
Kinnar   1/30/2014 5:59:27 AM
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Google has not done good a to a one of the best wireless devices manufacturer, I hope that the same will not be the case with Lenovo. Lonovo does have a good track record with IBM ThinkPad Series, but still the condition and reputation of the Brand Motorola is really gone down. 

Anand.Yaligar
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Re: A good hope
Anand.Yaligar   1/30/2014 8:15:43 AM
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 Lonovo does have a good track record with IBM ThinkPad Series, but still the condition and reputation of the Brand Motorola is really gone down.

@Kinnar, I am sure Lenovo is aware about this. Infact Lenove is saying that within a year of the Motorola acquisition, it is expected to sell 100 million smartphones worldwide.

Kinnar
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Re: A good hope
Kinnar   1/30/2014 1:29:46 PM
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@Anand.Yaligar You are right that's what is the expectation from Lenovo by the Moto Lovers, but still if you are mentioning 100 Million Units sales will be roughly 8 times their last year sales. Last year Lenovo market share was 12.9 Million units in Smartphone segment.

Anand.Yaligar
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Re: A good hope
Anand.Yaligar   1/30/2014 2:13:36 PM
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 Last year Lenovo market share was 12.9 Million units in Smartphone segment.

@Kinnar, I think its not 12.9 million but  Lenovo shipped an estimated 45 million smartphones. So 100 million looks like reasonable target.

Kinnar
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Re: A good hope
Kinnar   1/30/2014 2:34:00 PM
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Yes you are right 12.9 Million was the 3rd Quater sale of year 2013, but still 100% increase at level 3 position will be a tough task for them, but yes if it tend to survive the tough-phone giant Motorola it will be a good success. But I think Motorola opeartions will get merged under the Lenovo brand name.

jackOfManyTrades
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For Sale
jackOfManyTrades   1/30/2014 12:19:34 PM
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Famous cell phone company: $2.9B

Tiny thermostat company; $3.2B

 

chanj0
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Price Pressure
chanj0   1/30/2014 2:10:26 PM
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Lenovo laptop has been competitive in price. Will the new Lenovo smartphone put pressure to smartphone market? What are the "innovative" features Lenovo going to put to the very first Motorola Powerd by Lenovo smartphone?

 

smartbost
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Another American Company Sells Out ti China
smartbost   1/30/2014 2:29:03 PM
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Who is next? GE? Intel? Lenovo is a good company that will continue investing where Americans, slave to stock market are not!

rick merritt
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Lenovo buys Dell for $5 billion
rick merritt   1/30/2014 7:52:15 PM
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Headline circa 2020?

junko.yoshida
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Re: Lenovo buys Dell for $5 billion
junko.yoshida   1/30/2014 9:13:56 PM
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Ah, a good one, Rick!

junko.yoshida
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Re: Lenovo buys Dell for $5 billion
junko.yoshida   1/30/2014 9:19:52 PM
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But then, I must say, whey Dell? Why not Apple?

cookiejar
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When HiTech becomes an appliance.
cookiejar   1/31/2014 6:15:59 PM
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It seems that as the latest electronic devices become commodities, the originating companies get into trouble, because they are so used to the high profit margins of market leaders required for advanced engineering.

 We saw IBM get out of PCs.  We see Blackberry in trouble.  Nortel got wiped out.  Motorola has been bought out a couple of times.  IBM is out of x86 servers.   The Japanese audio/video companies are basket cases.

 As an electronic device becomes a commodity, consumers expect the 10 year service life of an appliance.  Margins get tight.  Smart phones are approaching the commodity level as are tablets.  Apple may get into trouble selling hardware, but iTunes should keep it afloat for a long time. 

Once a product becomes a commodity, incorporating planned obsolescence doesn't cut it with consumers.  Consumers expect a 10 year untroubled life from an appliance.  More and more people are becoming disgruntled with Windows.  Microsoft is diversifying into hardware, which does not compute, as it is used to high markup from its OS monopoly position, not the tight margins of an appliance manufacturer. 

We can see the struggle in the marketplace in audio/video products.  Audio has been a commodity for decades.   Sony, a market leader, used to high margins is in real trouble, selling off its capital assets.  3D is a faded hope, despite  3D BluRays and 3D TV.   4K  re-branded as UltraHD is a basket case.  There is no real 4K source material, except HD BluRays enhanced for HD to UltraHD processors.  Unfortunately, these 4K enhanced BluRays are unique to each 4K TV manufacturer.  There are no 4K broadcast standards being seriously considered.  Playstation and Xbox are repeating the HD-DVD versus BluRay war only this time half half-heartedly for  4K.   The average consumer couldn't care less about quality - witness the switch from CD to MP3 or mediocre BluRay sales or HDTV eclipsed by smartphone screens. 

China is being handed the exhausted technology leaders of the last century on a platter.  Is the only hope for U.S. companies patent royalties?   Technology is evolving away from the U.S.  Where is the next killer app?

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