A couple of weeks ago, the tech world was in a buzz when Google announced that they would be selling off Motorola Mobility to Lenovo. This was after Google had bought the company in 2011 and did not exactly do much with it, aside from the release of new Motorola handsets in the form of the Moto X and the Moto G. Many are probably wondering why Google sold off Motorola Mobility at an apparent loss, although an interesting article on Forbes might have you believing that it was a strategic purchase used to get their Android OEMs, particularly Samsung, in order.
In any case will Lenovo have more luck with Motorola than Google? While it remains to be seen as to what sort of mobile devices we can expect from Lenovo from its recently acquired Motorola Mobility arm, Lenovo’s CEO is pretty optimistic about the purchase and has recently expressed his confidence that he will be able to cut Motorola’s losses in just a few quarters. Speaking to Bloomberg, Yang Yuanqing was quoted as saying, “I am confident that from day 1 after closing, these businesses will quickly begin contributing to our performance and develop into pillars for long-term, sustainable growth.”
He further elaborated Lenovo’s plans for Motorola in a Q&A session conducted with The Wall Street Journal, “We have already identified areas where we can cut expenses. With the combined scale of Lenovo and Motorola after the acquisition, we can significantly reduce costs in terms of material procurement and supply chain. When we complete the acquisition, from day one, we can start working on those cost synergies. Most likely it will take a couple of quarters to turn around the Motorola business.” Motorola is one of the older and more reputable names in the mobile industry and it will be interesting to see if Lenovo will truly be able to turn things around for them.