Naina KhedekarJan 30, 2014 10:29:27 IST
Google’s decision to sell Motorola Mobility to Lenovo has raised some obvious questions for Indian consumers, like for instance, what happens to the Moto G that is slated to launch in India?
It was just last week that Motorola finally confirmed that the device would make its India debut on 5 February. According to a report by the Times of India, some sources familiar with the matter revealed that the deal won’t affect Moto G launch plans in India and the device will hit store shelves as scheduled.
The report also highlights Google CEO Larry Page’s blog post which said that the deal is yet to be approved in the US as well as China, and would take some time. Until then, he said that business would continue as usual.
The deal in Google sold Motorola's smartphone business to Lenovo for $2.9 billion, came as somewhat of a surprise, given that Motorola was all set to re-enter emerging markets with the Moto G.
Moreover, it also planned to bring the Moto X to European nations in February. Motorola’s Moto G is largely considered a budget warrior built with the Moto X as the foundation. The pricing and specs of the device put most budget Android phones to shame. In fact, Motorola has been looking to build smartphones cheaper than the Moto G.
The company is known to be taking a thin-margin approach to the Moto G, which costs $123 in terms of component and assembly costs. This means there’s an operating profit margin of about 5 per cent for each Moto G sold. So the company is not afraid of making sacrifices to get its phone to more corners.
The Moto G has already earned rave reviews for its performance, build and price. Check out our specifications review of the Moto G.
Google is retaining most of Motorola's portfolio of mobile patents, providing the company with legal protection for its widely used Android software for smartphones and tablet computers. Gaining control of Motorola's patents was the main reason Google CEO Larry Page decided to pay so much for Motorola Mobility at a time the smartphone maker was already losing money and market share.
Most analysts thought Page had paid too much money for Motorola and questioned why Google wanted to own a smartphone maker at the risk of alienating other mobile device makers that rely on Android.
Selling Motorola's smartphone operations will "enable Google to devote our energy to driving innovation across the Android ecosystem," Page said in a statement.
Lenovo is picking up about 2,000 Motorola patents in addition to the phone manufacturing operations.
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