Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Mobile Tech
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Lenovo CEO Vows To Turn Around Motorola in 6 Quarters
Lenovo CEO Vows To Turn Around Motorola in 6 Quarters

By Jennifer LeClaire
February 27, 2014 10:25AM

    Bookmark and Share
Investors shouldn't be scared by Motorola's $1 billion loss in 2013. Lenovo, which just purchased the Motorola Mobility smartphone business from Google, said it will improve that even from day one. Google is very good at software, ecosystems and services, but Lenovo is stronger in the manufacturing of devices, said CEO Yang Yuanqing.
 



Lenovo’s CEO is oozing confidence about the company’s chances of turning Motorola around. In fact, Yang Yuanqing predicted the handset maker would return to profitability in the next four to six quarters.

Lenovo acquired the Motorola Mobility smartphone business from Google for $2.91 billion. The deal includes a portfolio of smartphones like the Moto X and Moto G and the DROID Ultra series. Lenovo will take ownership of the future Motorola Mobility product roadmap.

With a strong PC business and a fast-growing smartphone business, Lenovo expects the deal to strengthen its position in the handset market. With Moto, Lenovo automatically gains a strong market presence in North America and Latin America, as well as a foothold in Western Europe, to complement its business in emerging markets around the world. But will that be enough to return the company to profitability?

Don’t Be Scared of the Loss

According to Bloomberg, Yang believes so -- and he plans to do it without cutting jobs. That’s no small promise, considering Motorola reported operating losses totaling more than $1 billion in 2013, Bloomberg's data reveals.

“Don’t be scared by the $1 billion-a-year loss,” Yang told Bloomberg. “We will improve that even from day one. Google is very good at software, ecosystems and services. But we are stronger in the manufacturing of devices.”

Yang is betting, in part, on synergies from buying IBM’s PC business and brand in 2005 and the recently announced acquisition of Big Blue’s low-end server business. But with smartphone market expected to decline, according to IDC, will Lenovo revive Motorola in time?

Targeting the Low End

Despite the high growth expected in many emerging markets, 2014 will mark the year smartphone growth drops more significantly than ever before, with only a 19.3 percent year-over-year growth, according to the firm’s Worldwide Quarterly Mobile Phone Tracker.

Of course, that’s just IDC’s take. On Wednesday, Yankee Group’s Carl Howe told us his data doesn’t offer evidence to support IDC’s numbers. Gartner, meanwhile, is looking at growth in emerging markets.

We caught up with Michael Disabato, managing vice president of network and telecom at Gartner, to get his take on the low-end smartphone scene. From Mobile World Congress in Barcelona, he told us Nokia, Motorola and others have announced smartphones targeted at developing and emerging economies.

“They are going for around $25 to $100. If they take off, the growth may stay where it is,” Disabato said. “The ‘developed’ nations are reaching -- or have reached -- the saturation level for these devices, and any significant sales may result from a significant innovation from someone.”
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Tech
1.   Virgin Mobile Offers Custom Plans
2.   Asana Revamps Mobile App
3.   Android 'Fake ID' Puts Millions at Risk
4.   FTC Wants Fix for Mobile Cramming
5.   Facebook To Force Use of Messenger


advertisement
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Dell, BlackBerry Downplay Threat
Say Apple-IBM alliance can't hurt them.
Average Rating:
BlackBerry Acquires Secusmart
German security firm offers street cred.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
New 'Backoff' Malware Slips Undetected into Retail Systems
'Malicious actors' are using a new variety of malware to access consumer payment data remotely through point-of-sale systems, according to a report from the Department of Homeland Security.
 
IBM Beefs Up Identity Intelligence Security Solutions
Big Blue is betting big on identity intelligence. IBM just acquired a private firm with security software to govern user access to apps and data across cloud and on-premise environments.
 
USB Security Flaw Lets Hackers Hijack PCs
Hackers can use the firmware that controls USB functions to take control of computers, say security experts. That means there may be a new class of attack for which there are no defenses.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.