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Lenovo CEO Looks to Turn Motorola Around in Mere Quarters After Deal Closes With Google

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With Motorola CEO Dennis Woodside already speaking on his departure from the company, Lenovo’s CEO had words of his own, stating a few rather bold claims for Motorola and its future success in the mobile market. Yang Yuanqing, the CEO of Lenovo, states that the company can turn Motorola around financially after just a few quarters once the $2.91 billion deal with Google is finalized and in the books. 

As indicated by Yuanqing, Lenovo’s goal is to ultimately introduce the well-known US manufacturer to Chinese and emerging markets. Not only will Motorola continue to produce premium devices, but the OEM will be a major competitor in the entry-level sector. As we have seen with the Moto G, Motorola claims this to be one its biggest successes, and will keep working to produce high-quality entry-level devices.

As reported by Bloomberg, about 3,500 Motorola employees will transfer to Lenovo, which will help Motorola’s financial bottom line – at least on paper. Lenovo is hoping to close all deals with regulatory approval within six to nine months.

We still have high expectations for Motorola, and we truly hope the company won’t plan on exiting the US market anytime soon, even with its entrance into Chinese and emerging markets.

Via: Bloomberg
  • http://twitter.com/jdrch jdrch

    LOLOLOL good luck with that. 3 management/ownership scenarios have failed to make Motorola profitable so far.

  • chris_johns

    I sad…

  • Tomas

    I hope they succeed from my “I want premium stuff” point of view. I don’t want something similar to the ThinkPad line degradation to a non-business quality device.

  • Dave

    As much as we and the dev community started loving them lately, their sales are still paltry compared to Samsung and Apple. My guess is that this is their aim.

  • Jprime

    would it be wrong to use “Lenovo” as my custom signature on the back of my soon to be ordered moto x?

  • Turb0wned

    R.I.P Moto, R.I.P Nexus after this year.
    Hello iPhone.

    • Adrynalyne

      There is no certainty that the Nexus program is going away. From a development standpoint, it doesn’t make a lot of sense unless GPE devices are going to:

      1. Update faster and Google handles the update process
      2. Provide proprietary binaries
      3. Have factory images
      4. Have a subsidized cost for developers

      • Adrynalyne

        Only an idiot would downvote this post. A registered idiot at that.

      • Patmw123

        Yeah, I’m honestly pretty sick of reading so many uninformed posts on here regarding the end of the Nexus program and the Moto X’s doom (in terms of software support) regarding the Lenovo purchase of Motorola. Neither are substantiated in any way and it seems like people are just trying to make themselves feel better about the potentiality of both because they may own other devices.

  • Feed Jake

    I hope we see the same thing that happened the last time Moto was acquired and they have to push out the preplanned products before they leave for China.

  • flosserelli

    Google couldn’t turn Motorola around, but Lenovo can in just a few Qs? I want some of that stuff Yang is smoking.

    • http://www.ytmnd.com MH

      Google wasn’t interested in turning moto around.

    • Justtyn Hutcheson

      Google is a software (and due to necessity, network infrastructure) company dabbling in consumer hardware with limited success. Lenovo is a consumer & business hardware company that is highly successful, and took a brand that was faltering (ThinkPad) and became the top PC maker world-wide within 5 years.

      Yes, I have absolute faith that Lenovo can scale Motrola’s business to profitability in less than a year, and get them to the #2 Android OEM within 2 years. #1 will be one hell of an uphill battle though, but a strong #2 is definitely possible.

    • needa

      its not like moto is trashing all of their immediate plans. they still have at least a year of stuff in the pipeline and quite frankly… the sales over in china alone would probably make them profitable. if you took out the r&d money that moto has sunk into the darpa stuff and project aria… they very well might have been profitable last quarter. add ten or twenty more million units built in china and sold abroad, and profitability is a given.

  • coolsilver

    Nope. Not with my dime.

  • AbbyZFresh

    When does the deal close?

    • Patmw123

      No one knows for sure quite yet. It’s most likely a little ways away.

  • Themanhere10

    Does this mean that my Moto X will never see an update again stateside? Afraid so……

    • Patmw123

      No.

    • Justtyn Hutcheson

      No. It means that Lenovo won’t let Motorola hemorrhage money like Google did, which makes sense. If you look at their proposed strategy, they are going to keep Motorola as their mobile brand. I get the feeling that they will be keeping Motorola’s design and software philosophy, as it is really efficient, and efficient = cheap.

  • Daeshaun Griffiths

    Somebody deny this acquisition.

  • ApplesNAndroids

    Damage control

  • Jarred Sutherland

    Illegals .. you mean … fellow humans?

    • The Narrator

      Racism is still alive in the US. It’s disgusting.

      • Jarred Sutherland

        It’s alive everywhere sadly .. it just seems that the US’s major export these days is fear and ignorance in the form of racial hatred.

        • Adrynalyne

          Other countries make up for it by bashing Americans whenever they can.

          • Jarred Sutherland

            I guess it’s that whole “if the shoe fits ..” thing. Obviously grouping all people into a single stereotype is a bad way to go, but I’ve run into more than my fair share of racism everywhere I’ve been in the states (I live in the US, was born here too). Obviously not everyone is, but it sure seems like plenty of Americans are racist.

          • Adrynalyne

            I disagree. Most of the bashing Americans receive are due to idiotic choices made by our government. A government should never (and never is) representative for an entire population.

            Regarding racism, it is a global thing.

          • Jarred Sutherland

            I agree it’s a global thing, never said I didn’t.

          • Adrynalyne

            Conversely, I never said you didn’t ;)

          • Jarred Sutherland

            You can’t do that!! :)

          • Adrynalyne

            :-D

          • Aaron

            Just look abroad and see all the hate for America. “Death to America” is like the national anthem in the Middle East. And Italy Overturned a not guilty verdict just to try to put Amanda Knox back in prison on the word of a career criminal because of anti-Americansm.

          • Jarred Sutherland

            The media sure does love to prey on the fears of the masses, don’t they?

          • Aaron

            Looks like the leftist media got you pretty much blinded with their propaganda.

          • Adrynalyne

            Guys, guys, lets not turn this into a CNN disqus. Please? Please!

          • Aaron

            My bad. I’ll stop, I promise. :)

            Edit: Better CNN than MSNBC or FOX, am I right?

          • Jarred Sutherland

            There lies your problem, having to continually separate people into political groups. Travel a bit, meet people and form your own opinions rather than let a corporation tell you what to think of other people.

          • Aaron

            My opinions are my own. And I have worked on a farm with “illegals”. I worked with them for five years. I got to know them pretty well. Have you ever worked with or even met them?

          • Jarred Sutherland

            I’ve met plenty of “them”. Turns out, they are just like other people … What a surprising turn of events.

          • Adrynalyne

            When I was in middle school and high school, I worked along side with quite a few people who were here illegally. Some of the nicest people I ever met.

          • Jarred Sutherland

            I’ve never worked side by side with them, but I have met plenty and I agree fully, some of the nicest people. Get to know them and their background, what the enjoy etc .. I love people I guess, no matter where they come from. Hopefully they like me too :)

          • Aaron

            They didn’t like you. they thought you were a tool. They told me so. :)

          • Jarred Sutherland

            Cool story bro.

          • Aaron

            “them”? Just how politically correct are you? Okay, I’ll play. Mauricio, Anselmo, and Guiermo were nice guys, but that doesn’t change the fact that they weren’t paying taxes, and were still more loyal to Mexico than the US. If you can’t see that there is a problem with that then you are totally brainwashed.

          • Jarred Sutherland

            Paying taxes, fine, I agree with that. Loyalty is not something we agree on it seems. I will follow the laws of the land to the extent that they do not violate my morals (and you can use loyalty with that to a certain extent), but having loyalty because of nationalistic pride is brainwashing to me and something I’ll never understand.

          • Aaron

            Are you familiar with the fall of the Roman Empire? It wasn’t the Mongols at the gates that overthrew Rome, it was the noncitizens rising up from within.

          • Jarred Sutherland

            I guess you haven’t figured out I don’t care what ruling party is here vs another. We aren’t going to see eye to eye on this, which is something I am sure we can agree with. With that, I will say have a great day and I am heading out for the evening.

          • Aaron

            Cool story, bro.

        • gl working at walmart though

          According to the US Bureau of Justice Statistics (BJS) non-Hispanic blacks accounted for 39.4% of the total prison and jail population in 2009 (841,000 black males and 64,800 black females out of a total of 2,096,300 males and 201,200 females). According to the 2010 census of the US Census Bureau blacks (including Hispanic blacks) comprised 13.6% of the US population.

          In 2013, by age 18, 30% of black males, 26% of Hispanic males, and 22% of white males have been arrested. By age 23, 49% of black males, 44% of Hispanic males, and 38% of white males have been arrested.

          • Justtyn Hutcheson

            Yep. Males are, indeed, idiots.

          • Jarred Sutherland

            I can agree, I’ve been an idiot more than once in my life. Not more than twice though.. ;)

          • Justtyn Hutcheson

            That reminds me of a quote I saw earlier today.
            “You don’t need a parachute to skydive. You need a parachute to skydive twice.”

            OT, Yep, I was a Stupid Male. Luckily I got past that stage pretty darn quick…..I swear…../whistle…..

          • Jarred Sutherland

            And authorities have never ever been accused (and proven) of racial profiling, etc! All of them people done gone and deserve it!

      • Adrynalyne

        It thrives on Disqus.

      • harryballs

        Actually it has nothing to do with racism. It has to do with love of country, following the laws of this land, keeping jobs and intellectual property in this country vs giving it to a communist country that doesn’t really like us too much.

        Okay mods, delete this too!

    • Aaron

      No, I think he meant people not legally in the country. People not paying taxes, but using services provided at taxpayer expense. People with no loyalty to the US, but operating freely within our borders. You know, humans that should have used official channels to enter the country but didn’t.

      • butthatsjustme

        Liberals are born to downvote anything that wasn’t first fed to them by the tyrant.

        Same logic goes for “racism”, no other country has to deal with the amount of different cultures (sic) as we do. And when they do? They ban minarets and burkas. They also sing racist chants at soccer games. So they are all fooling themselves believing racism is an American thing (and it isn’t even judging people based on their race, it is experiencing what the culture (sic) does to our country).

  • JSo

    Motorola going from high end phones to “high quality, entry level” phones.

  • Tony Byatt
  • Fry
  • MikeSaver

    RIP phones i liked…

  • Chris

    We’ll see…

  • Morbid138

    Turn Motorola around!? They were doing great! If device sales had something different to say about that, it was their marketing team’s problem.

    • Grahaman27

      they mean financially speaking. 384 million loss in Q4 is not doing great.

  • gambit07

    My guess? Quietly closing the US plant and moving overseas for cheaper labor.

    • Chris

      It wont end up quiet for long….. Hell news of the closure will leak out before it actually closes.

      • Jarred Sutherland

        And then what? Nothing. Americans are happy to raise a big stink for a few minutes and then go back to buying their Chinese made goods at Walmart and be in love with or mad at Justin Bieber and whatever other moron is in the news. People value cost over quality these days, just look around.

        • Chris

          Exactly.

        • The Narrator

          Right? All these people complain about China, yet everything else they buy is from there.

          • Jarred Sutherland

            It’s that whole thing of “talk is cheap”. Easy to spout off a few words in objection but doing something about it by supporting a local resource takes effort and/or more money. The Chinese can make beautiful things, they did for thousands of years and still do .. but sadly it’s corporations that demand criminally low pricing which force them into making cheap/poor quality goods. It’s a vicious cycle.

        • chjapa

          When your broke it’s hard to not stretch your money, that’s the real vicious cycle. But I agree more needs to be done.

    • Col_Angus

      Based on the teardown performed, wasn’t the added cost for stateside manufacturing only about $5 or 6 per unit? Doesn’t seen like a huge savings.

      • Jarred Sutherland

        If you make a million of them it adds up .. which is what they are going to look at.

        • Col_Angus

          It’s a figure that is only going to continue to get smaller. Chinese workers are starting to smarten up and demand more compensation. Even communism can’t contain that forever. Manufacturing is slowly starting to come back.

          • Jarred Sutherland

            I agree, and I agree with them demanding to make a better wage. It’s just that in the short term big corporations don’t care because it’s “PROFITS NOW!!!” mentality.

          • Franklin Ramsey

            Well take into account the costs of Taxes/Tarrifs to ship them out of China and into the US and we are already seeing some devices would be made cheaper in the US again. The problem is the cost of moving the Manufacturing back is step as all the old factories would have to be re-tooled, so right now a lot of businesses are looking to see if it would be cheaper to move back to the US, or for the estimated time that they would have to re-tool again, it might be cheaper to move to India or even Africa.

          • Dave

            Almost all tariffs are avoided when the company has a separate corporation it runs under that is incorporated in the US. Hence Honda, Toyota, Nissan, Kia of America naming.

          • Franklin Ramsey

            That’s actually not true. Hence why the major car companies have facilities in the US to build the models most popular in the US. It’s cheaper to ship parts and pay tarrifs/taxes on parts, than on a finished product.

          • Dave

            Well that was from college 15 years ago….I’m sure things have changed. What you said makes sense, like some Kia and Hyundai vehicles are 100% made in the US, with 100% foreign made parts. Always brings up the paradox of what an “American” car is. One that all the blue collar production is here with foreign made parts and foreign owners, or a GM truck which is owned here and made of almost all Canadian and Mexican parts, in Mexico. It used to be so simple.

          • Franklin Ramsey

            I think you might be thinking of that some companies will get tax/tariff breaks as incentives to create jobs places, but they don’t get waved on the basis of having a company or part of their company inside a country. Like, the car companies got local tax breaks and some lower tariff rates to build in some areas to attract them to build facilities to create jobs.

          • MicroNix

            Um, that’s not actually true either. For years Toyota has been increasing the domestic part contents of its cars it manufacturers here, not importing. A Toyota these days is almost as domestic as “American” cars.

          • Franklin Ramsey

            Actually it is fairly true. Toyota still imports about 20% of the parts it puts into the cars built. I never said how many parts a Major car company imports, just that all major car companies import parts as it is cheaper to import parts, than cars.

            Yes, many car companies choose to build more and more parts in the USA as it is getting cheaper to do so instead of import the parts, but ALL of them still import some parts. The most American Made vehicles are made by GM, but they still import roughly 12% of their parts.

    • The Narrator

      As long as they keep the same materials, just keep manufacturing down, profits will rise. The US is still too expensive.

      That’s if Lenovo doesn’t mess it up

      • tommy

        Right damn the u.s. and their labor laws. Move over seas, where they can get 12 year old factory workers for $.10/hour

        • The Narrator

          Sounds good to me.

          • chjapa

            It won’t when the whole circus comes crashing down.

    • ApplesNAndroids

      I’d say that’s a pretty well educated guess.

    • Alex Boro

      True, especially with the minimum wage getting rased in the USA soon.

      • Tim242

        Those positions pay a lot more than minimum wage….

      • The Narrator

        Not if the crybabies in congress say anything. Goodbye Boehner.

      • http://www.toysdiva.com Toys Samurai

        It’s not like China’s wages aren’t rising. May be Lenovo is looking to move its factory to Africa. The Chinese government and companies are well known in bribing African dictators.

    • Aaron

      Not necessarily. Lenovo has a manufacturing plant right here in NC.

    • Dane Carpenter

      Why would you guess that? Lenovo has already started moving some laptop manufacturing stateside. They might keep the plant in Texas.

      • chjapa

        I hope but the lure of more profit, under the guise of what’s good for the stockholder usually wins out.

        • Adrynalyne

          Outsourcing doesn’t have the allure it used to. There has been a trend of jobs returning home. That said, Lenovo might have some stateside plants, but their custom machines still come from China. That doesn’t bode well for a setup like motomaker.

          • chjapa

            The damage is done however. There are as many manufacturing jobs in China now as there are citizens of the US.

          • Adrynalyne

            It was bound to happen sooner or later as the world gets “smaller”. Not saying I agree with it, just that it was inevitable.

          • Dane Carpenter

            But it is the custom ordered ThinkPads that are made in Morrisville, North Carolina. They make them here because the turn around time is faster.

          • Adrynalyne

            I ordered a Thinkpad w530 December 28th. I received it at the end of January and it shipped from China.

          • michael arazan

            Considering how states are offering “Tax Free Zones” for ten years, that alone could keep jobs from going abroad.

      • gambit07

        There’s the possibility that they will, but when you can save $4-$6 per phone by going overseas, multiplied by a million phones, it’s not an insignificant cost savings. Especially given their previous ‘we are not willing to comment at this time’ remarks about keeping it open and this push towards making Moto profitable. That’s why it’s my guess.

        • Justin W

          Don’t forget their comments on how they are going to do it – using less expensive materials (plastic; crappy, cheap plastic.)

    • psuturtle

      I wouldn’t say the second part of your statement is a certainty by any means. If the Texas plant in hemorrhaging money because it’s poorly designed/run/operated, then then should close it. That doesn’t necessarily mean Lenovo is going to bail on possibly building phones in the US, especially give the SLAs that are experienced on current Lenovo products. One thing Lenovo has a reputation for is taking companies with horrible supply chains and turning them into well oiled machines (the IBM acquisition is a prime example). Lenovo has proven they are willing to manufacture in the US, so I wouldn’t rule it out. It just might not happen in somebody else’s plant, and that’s why they wouldn’t comment on it at the time of the announcement.

    • Le_Goog

      made in China EVERYTHING.
      Made in China tech industry!

    • http://www.toysdiva.com Toys Samurai

      And why would it help? Correct me if I am wrong. Motorola’s plants were ALL in China before Google bought it, and it was bleeding money like it was by a bus.

    • http://twitter.com/jdrch jdrch

      @gambit07:disqus Maybe, but it’s not as if Motorola was profitable before the US plant anyway.