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Economic Daily News: Lenovo's acquisition of Motorola Mobility

2014/02/11 12:56:46

According to press reports, China's Lenovo Group has agreed to buy Motorola Mobility from Google Inc. for US$2.91 billion. The deal will allow Lenovo to obtain 2,000 patent assets and the Motorola Mobility brand and trademark.

Lenovo, which has become a leader in the global personal computer market since acquiring IBM and NEC, is now switching to the mobile phone market in search of new growth momentum in light of the slowdown of the PC market in recent years.

Acquiring a well-known brand can be the fastest way for Lenovo to strengthen its mobile phone division and raise the market share of its products. Also, controlling patent assets will allow Lenovo to compete on a fair footing with market leaders Samsung and Apple.

The efforts and ambitions of Lenovo to internationalize its operations over the last decade provide food for thought for Taiwan, even acknowledging that Lenovo was only able to build the foundation and momentum needed to expand overseas because of the support it has received from China's government in its domestic market.

Its move to acquire Motorola Mobility reflected Lenovo's aggressiveness in reaching for the next opportunity to sustain its growth when its existing PC business showed signs of stagnation and demonstrated the company's resolute decision-making.

Over the past 20 years, there have been many examples of Taiwanese companies acquiring international brands, but most of them have ended in failure. How to make a new start based on past lessons is now a priority for them.

Efforts by China's high-tech companies to expand their international presence and develop their domestic supply chains are posing a tremendous threat to the future development of Taiwan's information and electronics industry.

For Taiwanese companies, accelerating their transformation and upgrades and finding a new way out has become a pressing issue. (Editorial abstract -- Feb. 11, 2014)

(By Y.F. Low)