As Lenovo Laptops considers to be the best Laptops of 2013,they have decided to build their own smartphone after the purchase of Motorola Mobility from Google which may result in slow down of their laptop business.
Google will keep the majority of Motorola's patents,including Android softwares.Google also said that "smartphone market would be better control and served by Lenovo".
After this purchase Lenovo will become the third-largest smartphone maker followed by Apple and Samsung.
Market research firm Strategy Analytics said in a blog post that Lenovo had made "a great deal" and would be benefit from economies of scale."The Chinese vendor gets access to the valuable US smartphone market and the fast-growing Latin America region. This complements its existing global PC business.
Chinese deal-maker
This is the second major success for Lenovo from last week.Last week,the Thinkpad-maker reveals that they had purchase the IBM's low-end server business for $2.3 billion that was China's biggest technology deal.Shares of Lenovo being traded in Hong Kong fell by more than 8% following the announcement, which came after the US market had closed.
There are many questions that "Whether Lenovo can turn their struggling business to long term business and will need to be answered in the coming weeks,"Strategy Analytics said.
On a conference call following the deal's announcement, Lenovo chief financial officer Wong Waiming said they were not concerned that they may have overpaid for Motorola to Google.
"Market prices go up and down and I would not take a one-day or half-day performance as a reflection of the market viewing it negatively," he said.
Mr Wong also said there was "no urgent need" for the company to tap the capital markets for money to fund the Motorola purchase given it had more than $3bn in cash available.
Acquisition spree
The purchase of Motorola was Google's largest acquisition and it gives a clear signal by Google that they had entered in the hardware business.Motorola Mobility created the Moto X and Moto G phones.Despite the sale of Motorola Mobility, Google chief executive Larry Page said in a blog post: "This does not signal a larger shift for our other hardware efforts."The deal with Lenovo comes on the heels of an acquisition spree for Google.
In January, it snapped up DeepMind, a UK firm focused on artificial intelligence, and bought military robot-maker Boston Dynamics in December.
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