Earlier this week, Lenovo Group Limited (OTCMKTS:LNVGY) (HKG:0992) announced their plans to purchase Motorola from Google Inc (NASDAQ:GOOG) for $2.91 billion. Now the tech company’s chief executive officer Yuanqing Yang shares his company’s plans to surpass mobile tech giants Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930).
Lenovo looks to the future
Yang spoke to Fortune recently to elaborate the deal. In the interview, he talked about what sparked his interest first:
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“It’s a very, very interesting love story. We were interested in Motorola a long time ago, even when they split into two companies, Motorola Mobility and Motorola Solutions Inc (NYSE:MSI). Right after Google Inc (NASDAQ:GOOG) bought Motorola [in 2012 ], I invited [Google executive chairman] Eric Schmidt to have a dinner at my house. I told him, “If you think you want run the hardware business, you can keep the business; but if you are not interested in the hardware business, we definitely can handle that, take over that. “He remembered that, and two months ago, he sent me an e-mail. I called him back, and he asked me, “Are you still interested in Motorola?” I said, “Definitely.” We started to discuss it. I went to Silicon Valley many times. [Google CEO] Larry Page invited me to his house to have a dinner. Very quickly — in just two months — we closed the deal.”
Lenovo hopes to get a boost in the market
Since Lenovo Group Limited (OTCMKTS:LNVGY) (HKG:0992) already leads the smartphone market in China, the company could have a lot more to offer with the Motorola brand. In fact the latter is already well-established with Latin America, the United States, and a few European countries. Yang believes Lenovo Group Limited (OTCMKTS:LNVGY) (HKG:0992) will be able to use both brands to compete better in all markets.
The mobile phone market is a tough market to crack. There are a few select companies like Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) that continue to lead the market, but many other tech companies don’t share that same level of success. Lenovo Group Limited (OTCMKTS:LNVGY) (HKG:0992)’s decision to buy up Motorola could prove beneficial.