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Lenovo seems to be on a buying binge, and not even Google can escape. In its second deal in a week, the Chinese company, once best known for making personal computers, announced that it was buying Google’s Motorola Mobility smartphone unit for $2.91 billion. Last week, Lenovo acquired IBM’s low-end server business for $2.3 billion.
Though not a total financial loss for Google, the sale of the unit less than two years after Google paid $12.5 billion for it is a sign of fits and starts at the company in the mobile age, Claire Cain Miller and David Gelles report in DealBook.
Since 2005, Lenovo has overtaken Hewlett-Packard and Dell to become the world’s biggest maker of PCs. But now, Lenovo appears to be building a comprehensive business in simple computers, perhaps shying away from the PC market as more people buy smartphones and tablets instead. “While phones use different kinds of chips than PCs or servers, many parts and much of the contract manufacturing is done by the same companies. With more products, Lenovo can squeeze its suppliers harder,” Ms. Miller and Mr. Gelles write.