Motorola Business Online
Why Google bought Motorola first?
That happened in May 2012, under the baton of Larry Page. At that time, despite the exorbitant price, it seemed like a good idea. Google stroke of a pen had everything: Android operating system for smartphones used the world over, and terminals that could mold and transform at will. And not only that. He also bought the bulky Motorola patent portfolio and its business cable television receivers (set-top boxes), something that would allow him to sneak into the living room and the TV. A wet dream to reality TV finally Gootle. Seen this way, Motorola was all candy
It was an acquisition in August 2011 that Motorola business online Mobility saved from bankruptcy. Google, the search giant decided it was time to branch out and pay more attention to hardware (and incidentally made some patents that saved a wave of demands), and saw the American manufacturer – which at that time he was in a deep crisis – a chance. Thus, the then brand new CEO Larry Page announced the purchase of the company by $ 12,500 million. This produced profound changes in Motorola. On the one hand the company, which had been losing market share steadily against other manufacturers, managed to regain the respect of consumers. On the other, he received funds and technical support necessary to begin developing more innovative and able to bring it to rise to the occasion products. Thus was born a new product line, led by the X-Moto, G, and E, which today already going through its third generation, and managed to position the company as one of the most innovative and powerful in the field of mid-range. Despite this revival, Google – pressed by Samsung and other manufacturers who have not seen with good eyes the Android developer get into the hardware business – decided to dispense with Motorola relatively fast, and sold the mobile division of the company Lenovo in less than $ 3,000 billion. The search engine patents and retained only the division of cable boxes, which sold shortly afterwards by a similar amount.
In the hands of Lenovo, one of China’s leading computer manufacturers (after having acquired the division of desktop computers IBM in 2005 at $ 2,300 million) Motorola continued to develop the product line inaugurated under the umbrella of Google, and She maintained its commitment to prioritize the user experience above specifications. Thus, the Moto X, the phone top line of the company, managed to keep the price around $ 400, being the cheapest flagship and one of the most popular in some markets – though never reaching brands like Samsung or Apple . At the same time, the company continued betting on the mid-range segment in which more is outstanding, thanks to teams like the Moto G and Moto E.
However, the Moto line is not a single developed by Lenovo. The company also manufactures five product lines: the A, mid-range and low-oriented young audience in emerging markets; P, developed for the corporate audience, a segment in which the company is strong in the market for laptops with its ThinkPad line of computers; the S, consisting of powerful computers with a focus on entertainment; and K and Vibe, two premium lines (for developing markets) oriented entertainment and highlighted by the power of their teams. Not all of these lines compete in the same markets, so although this is a broad product portfolio, their availability varies by region.
However, Lenovo is intended to order his line, and unify its brand. Thus, at some point this year, the Chinese firm will discontinue the use of the Motorola brand for all its products, replacing Lenovo. This does not mean that the internal division, is now Motorola will disappear. The company is betting stronger by the sector, and to keep the name of the Moto line in all devices, which continue even wearing the iconic M brand on the back. However, they also include the new brand, and will be called the Lenovo Moto X, G and E. At the same time, it is possible that this line incorporates new high-end devices. By contrast, the low-end computers will become unified under the Vibe line, which will consist entirely of smartphones which will be priced less than $ 100, with which Lenovo plans to continue disembarking in less developed markets. Thus, the company seeks to begin to associate their brand with Android phones, something that until now has not happened.
The loss of the Motorola brand can be a hit for the nostalgic, and for new fans of their products. And, after losing to Nokia in the hands of Microsoft, the disappearance of the creators of DynaTAC, the StarTac and other legendary teams, is a blow to memory. However, the reality is that even prior to the purchase phones produced no longer carried the brand name on their packaging, since it was removed from them in 2013. At the same time, despite its historical value, brand had lost prestige, and no longer part of the top of mind, ie, of the first places in the minds of consumers when these thought on mobile phones. That’s why this change makes sense, and will allow the Chinese brand installed and become known among users.
But just as some leave, others return. After selling its mobile phone division to Microsoft in 2013, Finland’s Nokia was thinking of re-manufacture equipment and sell from this year when the clause prevents it from competing in the business included in the sale agreement with the giant the software expires. Actually the company took its first steps in this direction in 2015 by launching the N1, a tablet Android operated in the Chinese market.
Now, however, the company is hiring people in their product development laboratory in California. Speculations are that the primary objective of the company is to develop a new team to return to the market to compete with the big boys. This time no strange experiments, and using Android, an operating system that guarantees greater acceptance by users that their previous commitment to Windows Phone, and Symbian and MeeGo above.
The problem is that after spending years out of the game, Nokia no longer has the fame and prestige have ever known, when it reached its historic peak market share in the second quarter of 2007, with 50.8% market share smartphone. However, nostalgia is powerful, and will surely lead to the new device produced by the company obtains widespread, and becomes popular among early adopters and techies.
To avoid problems, however, Nokia will not give such a step by itself. Instead, the company will license its brand and leave in the hands of other companies manufacture and distribution of its new equipment. At least to ensure that the new business will not end in huge losses.
Meanwhile Microsoft, which has already renamed the Division acquired Nokia mobile devices as Microsoft Mobile, has not been able to increase the market share that the Finns had at the time of sale. However, far from giving up, the Redmond company is committed to revive its mobile operating system with a series of new devices (though talk more about that another time).
With Motorola out of the game, and Nokia attempting a comeback, 2016 will be an interesting year to see the evolution of the business of mobile devices.