At a time when Apple Inc. is rumored to be planning to launch its next generation smartphone, iPhone 6, in the next few months, Lenovo announced its plan to acquire Motorola mobility from Google, which could affect the Cupertino company's smartphone business.
Lenovo Group announced on Wednesday that it has agreed to buy Google Inc's Motorola handset division for $2.91 billion, hinting that the PC maker is set to take on companies like Apple Inc. and Samsung Electronics in the smartphone sector. The deal will help the Chinese company explore other markets through the Motorola brand.
JP Morgan analyst Mark Moskowitz said in an investors' note that the Google-Lenovo deal will consolidate the fragmented Android smartphone arena, limiting Apple's ability to woo Android users who are unhappy with the current cheap and lower-quality devices, reported CNET.
Moskowitz went on to say that the smartphone market could go the PC market way with slow growth, vendor consolidation and less difference between products from mobile phone makers.
If this trend takes place, Apple may be affected as its products are priced on the higher end. The availability of high-end smartphones at a reasonable price from companies like Samsung and Lenovo may force Apple Inc. to lower the price tag of its products.
Meanwhile, rumors on the release date of iPhone 6 have been doing the rounds. Chinese Analyst Sun Changxu told the QQ-Tech website that Apple would start production of its new smartphone in May before the official launch in June which is corroborated by Jefferies analyst Peter Misek. However, Cowen and Company analyst Timothy Arcuri thinks the iPhone 6 launch may take place only in September.
iPhone 6 is expected to sport a new look, and improved hardware and software. Reports are doing the rounds that it will have several features like a 4.8-inch scratch-resistant sapphire-coated glass display that will enable solar-charging, Retina+ IGZO display that will enable gesture control, 802.11ac Wi-Fi connectivity and A8 processor.