Lenovo CEO claims he can put Motorola in the black in just a few quarters

Lenovo CEO claims he can put Motorola in the black in just a few quarters
Lenovo obviously believes that it is a good idea to purchase Motorola or else the Chinese company wouldn't have agreed to the deal with Google in the first place. We've talked about why we think Lenovo made the deal, but now Lenovo is explaining more about its rationale, and how it expects to be able to bring Motorola back to profitability in less than one year.

Lenovo CEO Yang Yuanqing spoke to both Bloomberg and The Wall Street Journal to explain more about the plans and expectations. The prevailing theory was that Lenovo's success in Asia would be combined with Motorola's brand power in North America and Europe to create a global powerhouse. That is certainly part of the idea, but it seems that Yuanqing also has plans to reintroduce the Motorola brand to China and emerging markets. Of course, Motorola has already begun its move into emerging markets with the Moto G, and Lenovo doesn't want to interrupt those plans, but to expand on them. 

Lenovo will not be abandoning the premium market either. Lenovo obviously is banking on the brand name of Motorola to be worth the majority of the $2.91 billion it spent on acquiring the company, and it knows how much money Motorola has lost for Google (almost $2.4 billion in less than two years of operation). But, Lenovo is confident that it can lower material costs and supply chain, "turn around" Motorola in just a couple quarters, and make the company profitable again in the end. 

We assume that at the very least Google believes in Lenovo's plans, which is why it agreed to sell Motorola in the first place, but it certainly won't be an easy route. And, it is hard to believe that Lenovo would be able to both make Motorola profitable that quickly while holding true to the plans that Motorola began while it was a Google company. Most notably, it is hard to imagine the Moto Maker customization plans being a part of such a quick turn-around, but we'll have to see. 

source: Bloomberg & WSJ via The Verge

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19 Comments

1. lalalaman

Posts: 638; Member since: Aug 19, 2013

Meh....talk that talk when ever u want...only future know what will happen Bt it will be great if the can do it...somehow

2. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

I believe Lenovo can do it, just like what Lenovo did with IBM's Thinkpad.

6. kaikuheadhunterz

Posts: 1157; Member since: Jul 18, 2013

I believe so too

8. __0__

Posts: 242; Member since: Jan 07, 2014

Think pad was already very successful before lenovo bought it

17. QWIKSTRIKE

Posts: 1459; Member since: Mar 09, 2010

THE THINK PAD WAS NOT DOING AS WELL AS IT IS DOING NOW. It had the IBM label but since making huge profits was the bottom line because it was made by IBM it did not go far. Just like IBM in the personal PC market.....they thought that people would pay thousands more just because it had their name on it. This notion was changed with Intel's slogan Intel inside. This somewhat leveled the playing field for PC makers other than IBM. IBM tried to sue Intel to remove that label because it implied all PC's that had Intel inside were equal to IBM's PC because IBM also had Intel inside.....go figure.

11. ScottSchneider

Posts: 336; Member since: Dec 06, 2011

This guy has Guts to admit it publically while others hide... Lets see how it is after a year and a few quarters.. I just got my hands on the Moto G and I say it is one damn good phone and i would love not to see Moto going down...

15. aksa123

Posts: 366; Member since: Jan 30, 2014

"... just in a few quarters". Yep, the guy does really have balls for saying that, considering lenovo isn't even as good as motorola.

18. Mxyzptlk unregistered

I forsee nothing but money bleed and the color red.

3. phantom_six_man

Posts: 82; Member since: Feb 12, 2014

They better do it so we can believe it

4. Miracles

Posts: 560; Member since: Aug 31, 2013

Just flood the asia market with a bunch of low-end motorola phones and wahhla.....back in the black.

10. X.E.R.O. unregistered

Or they can just bring in their Lenovo smartphones in the U.S. and rebrand it as Motorola. Haha. Bad idea.

5. eisenbricher

Posts: 973; Member since: Aug 09, 2012

Currently Moto G is super hot in India!

9. Scott93274

Posts: 6031; Member since: Aug 06, 2013

Sold out in hours didn't it?

7. surethom

Posts: 1661; Member since: Mar 04, 2009

I have always known how to make Motorola more money, launch outside north America within a few weeks after releasing in America. It took them 6 months to launch the Moto X in Europe & then only the 16gb version not the better 32gb version.

13. aksa123

Posts: 366; Member since: Jan 30, 2014

Chinese companies only have one markeing strategy : low price.

14. X.E.R.O. unregistered

Haha. To be fair, the quality of their products aren't so bad considering the low price. I've handled one myself.

16. aksa123

Posts: 366; Member since: Jan 30, 2014

Seriously, when it comes to chinese smartphones, it's always "price first" isn't???

19. dexter_jdr

Posts: 1163; Member since: Jun 28, 2012

Huawei > Lenovo moblile at low-end atleast..

20. Leonis

Posts: 338; Member since: Jan 08, 2014

Lenovo is run by very smart and people. Just see how the company is doing. Its doing fine. I have no doubt they will turn this into profit. They probably know exactly how to do it right now. Just imagine Lenovo put "Moto or Motorola brand" on their future phones and just expand. Its not that hard to make a good phone now a days when tech has slowed down and the big players like Samsung try desperate move like 2k display to sell their phones when 720p is just fine. Lenovo will be able to put together a damn good phone within 2-3 years. Which is a quite short time.

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