Yang: It takes 4 to 6 quarters to turn Motorola's handset into a turnround

Source: Internet
Author: User
Keywords Motorola turnround Yang
Tencent Science and Technology Ming Xuan February 25 to compile the acquisition of Google's Motorola mobile phone business Lenovo Group chief executive Yang said in Monday, Lenovo Group is currently planning to 4 to 6 quarters, let the loss of Motorola mobile phone business without layoffs in the case of profit. "Don't be afraid of losing $1 billion a year," Yang said at the 2014 World Mobile Communications Conference (MWC) in Barcelona in Monday. We will improve on this from the first day. Google has a very good software, biosphere and services. But we are better at making equipment. The plan, which will be formally implemented after the deal is completed, is optimistic that the deal has been approved by regulatory authorities. Lenovo hopes to buy Motorola mobile phone business and IBM's low-end server business, so that Lenovo Group no longer rely on the declining PC industry, to become a provider of more products. Lenovo Group's two deals amounted to $5 billion trillion. The two deals are bigger than what he has done before, how to absorb new teams and find ways to cut spending to make profits will challenge his ability. Yang said that because companies aim at emerging markets, improving profitability can be achieved by increasing capacity and sales. In addition, Lenovo will cut spending through internal communication and computing services. The right choice Lenovo announced on January 23 that it would spend $2.3 billion to buy IBM's low-end server business. A week later, Lenovo announced it would spend $2.91 billion to buy Motorola Mobile. The company's share price was closed at HK $10.96 on the day before Lenovo's announcement of its acquisition of Motorola mobile phone business. Since then, the company's shares have fallen 29% per cent in Monday, at HK $7.80, as investors fear that Motorola's mobile phone business will weigh on Lenovo's profitability. Yang said a company focused not only on short-term performance but also on long-term sustainable growth. If we only focus on the PC business, we will not be able to continue to grow after one or two years. So we have to find new areas, find new opportunities, and help shareholders make more money. So I think we have the right choice. Kirk Yang, an analyst at Barclays Bank in Hong Kong, Yang Chuxu that Lenovo could easily cut the operating costs of Motorola's mobile phone business by 70%. But Yang did not comment. By acquiring Motorola Mobile handsets, Lenovo will become the world's third-largest smartphone maker after Samsung Electronics and Apple, accounting for about 6% per cent of the market, according to data from Strategy Analytics, the world's third market research firm. Yang believes the deal will complement each other and make it a better challenge to Samsung Electronics and Apple. Lenovo's deal with the Motorola mobile phone business and IBM's low-end server business was larger than the company's acquisition of IBM PC business in 2005Scale。 Although IBM's PC business was not profitable in 3.5 hours after the acquisition, the deal also transformed Lenovo from the world's eighth-largest PC maker into the world's largest PC maker. After a drop in global PC shipments last year, Yang is leading Lenovo's diversified product line. Gartner, a market research firm, said last month that global PC shipments fell 10% per cent year-on-year, the worst year in history.
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