Why Google Store has a $100K Bonus for $50K Purchases
Posted by Hacker News contributor katyrae on July 31, 2018 06:00:00 The latest news about Google’s massive acquisition of the hardware maker Lenovo, which will see the acquisition valued at $3.6 billion and give the company control of nearly one-fifth of the PC market, has been making headlines.
The deal comes as Lenovo is also being valued at over $6 billion, a staggering sum when you consider that the company’s net profit margins have been a miserable 7.9%.
That means that for every $100 that Google pays to Lenovo for the deal, the company makes $1.09 in profit.
So while the $100 million in Google’s coffers could be used to help the company expand its presence in the U.S. and abroad, it could also mean that the U and Japanese governments will be on the hook for the rest of the deal.
This is the second major acquisition for Google in the past year.
In March, the tech giant agreed to buy Nest for $3 billion.
And in June, Google bought a large chunk of the Chinese search giant, Baidu, for a whopping $13.7 billion.
However, with the acquisition of Lenovo, the potential to make billions of dollars off of a company that makes almost nothing in the way of hardware seems to have evaporated.
In other words, the more the price of a laptop goes up, the less people buy a Lenovo laptop, and the less likely it is that the brand will remain around long term.
With Lenovo’s stock in the red and its hardware company under increasing pressure from competition from other Chinese vendors, the likelihood of the brand returning to the U in the near future is slim.
That said, it seems likely that Google’s purchase of Lenovo will create a few big changes for the PC industry.
First, the PC is going to be more expensive, and it will be more likely for a laptop to be a more affordable purchase than a phone or tablet.
This means that the average PC user is going be able to buy more hardware at a higher price point than a typical smartphone or tablet user.
And this will mean that there will be a growing number of OEMs competing with each other to produce the best PCs available, which is a good thing.
But it also means that Lenovo’s acquisition will make Lenovo’s PCs a little less competitive than they otherwise might have been.
As a result, it’s going to increase the likelihood that OEMs will sell their PCs at lower prices, which means that manufacturers will have to make a greater effort to sell their products at a lower price point.
That means more competition for the most expensive PCs and a slower decline in the prices of PCs sold by OEMs.
And while the price drop is likely to be temporary, it is also possible that the PC OEMs themselves will start to see their sales decline, which could lead to a more competitive market for the last place you look on the list of most expensive products.
It’s worth noting that this is a situation that has already begun to develop, with some OEMs announcing that they are dropping prices on the last-place PC.
And the situation is likely going to get worse before it gets better, as the PC makers will be forced to make more expensive computers in order to keep their market share.
It will be interesting to see if the PC manufacturers will continue to be able afford to produce their best PCs at a cost of around $1,500, and if they will find ways to make their devices cheaper and more accessible to consumers.