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Lenovo’s CEO on How Motorola Acquisition Can Help Lenovo Become Number One

August 14, 2014 - Written By Nick Sutrich

Lenovo has been a rising star in China’s smartphone market for a while now.  Recently hitting the number one spot in its home country according to the International Data Corporation, Lenovo still has plenty of room to grow worldwide as we’ve seen in recent smartphone marketshare studies.  One of the biggest ways Lenovo plans to grow worldwide is with their hopeful acquisition of Motorola from Google, one that hasn’t gone through yet but doesn’t seem to be hung up on anything in particular.  Right now Lenovo is doing well in mainland China, Southeast Asia and Eastern Europe, but they are still a virtual unknown in parts of the world like North and South America.

Because of this Lenovo’s CEO Yang Yuanqing says that they are planning on leveraging Motorola’s recent success with the Moto X, Moto E and Moto G in these specific regions to help Lenovo become the number one smartphone manufacturer in the world.  Starting with the entry-level and mid-range phones, Lenovo is going to try to take the market out from under manufacturers like Samsung and LG, and it also plans on turning Motorola completely around as well.  These past couple of quarters have been much better for the ailing American-based mobile company, but with the sale to Lenovo the goal is to turn Motorola’s profit-making business around in four to six quarters, meaning Motorola should be a lean and mean giant this time next year.

We’ve seen lately that Lenovo is killing it when it comes to the PC business, recently over taking HP as the world’s largest manufacturer of PC’s with some incredible growth to the company’s main business.  Now it plans on using those same tactics in the smartphone world to become number one, specifically their branding outside the North and South American markets.  Right now Lenovo is citing sales and saying that users are shifting from premium to entry-level and mid-range products for their smartphone needs, and this is an area that Lenovo can specialize in above many other manufacturers.  Time will tell if this is the right strategy, but with the growth they’ve been seeing it may very well be the thing to do right now.