Lenovo Says Motorola Will Be Worthwhile With 18 Months
Motorola seems like it’s off to a promising begin underneath the possession of Lenovo. The Chinese language agency revealed that its new telephone enterprise — acquired from Google in October for $2.ninety one billion — shipped 10 million smartphones final yr and is estimated to be 12-18 months from profitability.
Lenovo, which ranks third on international shipments when Motorola’s haul is added, confirmed that Motorola’s shipments rose 118 % yr-on-yr. The Motorola enterprise pulled in $1.9 billion in income final yr, and Lenovo believes it may be made worthwhile in 4 to 6 quarters of enterprise.
That prediction is a far cry from the perpetual gutting of the corporate that occurred after it was acquired by Google. Motorola underwent a number of ‘streamlining’ processes, which noticed hundreds of staff laid off worldwide, web sites shut down and exits from some nation markets.
Lenovo is already busy rebuilding the corporate. It’s poised to reenter the Chinese language market early this yr, the place will probably be one in every of three smartphone manufacturers operated by Lenovo. Alongside the primary product line and Motorola, the agency is getting ready to introduce a brand new Xiaomi-like handset model targeted on mid-vary and reasonably priced segments.
The brand new Motorola figures have been revealed as a part of Lenovo’s Q3 2014 monetary report, which included $14.1 billion in income, up 31 % yr-on-yr. Gross revenue for the interval rose fifty four % yearly to succeed in $2.1 billion, though the corporate’s PC enterprise continues to account for a dominant (sixty five %) share of revenue.