Regarding Lenovo's recent acquisition of Motorola,
CEO Yang Yuanqing claims that his company's long term business model
will enable the Chinese tech giant to turn Motorola's fortunes around
fairly quickly. That's despite the parallel finalization of the acquisition of IBM's low-end server division .
Understandably, skeptics would argue that if Google, with all of its resources, was unable to do it, then how does Lenovo plan on getting it done, in only a few quarters at that?
According to Yang, the company will be able to save a significant amount by immediately lowering material costs and global scaling. They also plan on introducing more Motorola products, particularly in emerging markets like China, where he claims the Motorola brand will be recognized and embraced by customers. This will likely result in more entry-level devices, but if they're anything similar to the Moto G - without a doubt the budget device of the season last year - then we're all for it. Yang assures us that the company will continue to publish premium devices as well under the Motorola brand, so a Moto X sequel might be somewhere down the road as well.
Part of the reason why Google failed to turn Motorola around was due to the fairly limited market availability of its smartphones. Lenovo's position as a global distributor may be just what the doctor ordered, just as long as Lenovo didn't bite off more than it can chew with two large scale acquisitions at the same time.
Understandably, skeptics would argue that if Google, with all of its resources, was unable to do it, then how does Lenovo plan on getting it done, in only a few quarters at that?
According to Yang, the company will be able to save a significant amount by immediately lowering material costs and global scaling. They also plan on introducing more Motorola products, particularly in emerging markets like China, where he claims the Motorola brand will be recognized and embraced by customers. This will likely result in more entry-level devices, but if they're anything similar to the Moto G - without a doubt the budget device of the season last year - then we're all for it. Yang assures us that the company will continue to publish premium devices as well under the Motorola brand, so a Moto X sequel might be somewhere down the road as well.
Part of the reason why Google failed to turn Motorola around was due to the fairly limited market availability of its smartphones. Lenovo's position as a global distributor may be just what the doctor ordered, just as long as Lenovo didn't bite off more than it can chew with two large scale acquisitions at the same time.
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