Posts tagged Google
I’ve read six or seven articles about Lenovo’s purchase of Motorola (for 2.9 billion dollars) but not a single one shares, what I think, is the most obvious point. This is Lenovo’s entry point to owning the business smartphone market in the US.
BlackBerry’s departure from relevance has left a power vacuum for the de facto work device (yes, even after all these years) and this is where Lenovo wants to position themselves - every employee at every major company is given a laptop and a phone. Lenovo wants to be the one company providing both.
Lenovo is already the “number one PC company in the world for large business and the public sector” and their ThinkPad is a legendary “work computer.” With businesses as their primary customer it doesn’t take much of a leap in logic that they’d want to sell other things to their customers. Phones are a no brainer.
Lenovo already sells a ton of phones. They’re in fourth place globally with no footing at all in North America. What’s the best way to break into a highly competitive market? Buy someone who is already competing.
And that’s exactly what Lenovo has been trying to do. They tired to buy BlackBerry very recently and to me, tipped their hand that they want to focus on business. Lenovo wouldn’t have looked at BlackBerry if they wanted to make a dent in the consumer market. The BlackBerry brand has never been relevant to consumers but has (until recently) been a mainstay for the white collar at work.
So, Lenovo didn’t buy BlackBerry but instead bought Motorola. Probably a better move since the Motorola name doesn’t immediately evoke a company floundering.
I see no reason why big companies, with thousands of employees, would go anywhere else. Giant companies rotate out laptops and phones every few years. My girlfriend works for one of the big four accounting firms and recently had her work computer upgraded. She went from a 3 year old ThinkPad to a new ThinkPad (still running Windows 7). And she’s eligible for a new phone when her contract runs out at the end of the year.
A Lenovo that owns Motorola will now be able to deliver both, ThinkPads and phones, to companies who buy devices by the gross. Thousands of employees all rotating through 3 year laptop cycles and 2 year phone contracts.
Lenovo can own the business sector in two easy steps:
1) Make devices cheaper for companies that buy laptops and phones together.
2) Bake in some software that will allow IT to to easily deploy and update their applications on desktop and mobile.
Game over. Lenovo wins.
This is the same thing many people, myself included, thought HP was going to do with the consumer market when they bought Palm. Buying a laptop for your kid going to college? For another $100 add a TouchPad. For $50 more add a Pre on contract.
HP had all the retail connections anyone could want. It was just a matter of bundling those devices together in a compelling way. But I guess HP couldn’t see the writing on the wall and, well, we all know what happened to Palm.
I don’t think Lenovo is going to miss this though. Their attempt to buy BlackBerry shows you exactly where their head is. They want the business market, not the consumer one. And they are poised to take it over.
Texts from Liz through her fancy eye device. w/ @amoocowcow (at Collegehumor LA)
Purchase Glass. Annoy your friends.
Google Now: behind the predictive future of search
A great look at Google Now by Dieter Bohn and the video team at The Verge. Read the entire article. Here’s just a small taste:
For decades, visions of the future have played with the magical possibilities of computers: they’ll know where you are, what you want, and can access all the world’s information with a simple voice prompt. That vision hasn’t come to pass, yet, but features like Apple’s Siri and Google Now offer a keyhole peek into a near future reality where your phone is more “Personal Assistant” than “Bar bet settler.” The difference is that the former actually understands what you need while the latter is a blunt search instrument.