China’s Lenovo Readies Phone press on Abroad

The world’s biggest central processing unit maker by shipments and a rising power in the sphere of smartphones, assumed it is eager to get bigger its handset sphere in haste abroad, at present with the aim of its foothold of handset maker Motorola Mobility has congested.

The Chinese machinery company, which officially took in excess of Motorola from prior proprietor Google Inc. Survive week, assumed Thursday with the aim of growing sales of computers and smartphones already were to blame in lieu of a 19% progress in the sphere of get profit to $262 million and a 7% progress in the sphere of revenue to $10.48 billion in the quarter ended in the sphere of September. Smartphone shipments rose 38% compared with a time earlier.

Folks results didn’t include the performances by the side of Motorola or else International sphere tackle Corp. ’s head waiter detachment, which besides became a Lenovo subsidiary survive month.

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With the addition of Motorola’s operations, Lenovo- and Motorola-branded smartphones boast a combined 7.8% share of total shipments, boosting Lenovo to rebuff. 3 behind Samsung Electronics Co. And Apple Inc., from rebuff. 4, Lenovo assumed. In the sphere of the U.S., someplace Lenovo hasn’t sold phones under its own brand, Motorola’s share of the smartphone marketplace additional than doubled in the sphere of the hottest quarter to push the Chinese company to rebuff. 4, close behind LG Electronics Inc., Lenovo assumed. Lenovo’s immediate goal in the sphere of the U.S. Is to recoil to rebuff. 3 and threaten the leadership of Samsung and Apple, the company assumed. Samsung and LG are based in the sphere of South Korea.

Yang Yuanqing , Lenovo’s chief executive, has assumed with the aim of he wants the company to happen to the rebuff. 1 smartphone maker in the sphere of the humankind.

Lenovo’s total cellular phone ambitions are an extra sign of the shifting power balance in the sphere of the cutthroat smartphone industry, someplace marketplace leaders Samsung and Apple are facing contemporary challenges from low-cost competitors, mostly Chinese. Lenovo has a thriving total personal-computer sphere, but in the sphere of handsets it has largely grown-up share by the side of land of your birth, promotion inexpensive but good-quality phones in the sphere of the flourishing Chinese marketplace along with domestic rivals such to the same degree Xiaomi Inc. And Huawei Technologies Co.

At present growth in the sphere of serving dishes is slowing, and the Chinese companies are looking abroad.

“China’s [smartphone] marketplace is saturated,” and growth is likely to reduce speed, Mr. Yang assumed Thursday. “To win, you boast to happen to a total player.”

The Motorola acquisition gives Lenovo a prop up not solitary in the sphere of the U.S. But in the sphere of other mature markets, someplace the U.S. Handset maker has keen relationships with carriers and its intellectual property can help defend it in contradiction of patent lawsuits. Motorola’s handsets—which are positioned to the same degree higher-end phones than Lenovo’s—also boast a advanced total margin, or else profit in the manner of deducting the cost of goods sold, Mr. Yang assumed.


Despite with the aim of advanced margin, Motorola’s handsets aren’t profitable, in the sphere of part for the reason that the company’s overheads are sky-scraping, analysts say. But Mr. Yang repetitive his forecast with the aim of Motorola would ensue back in the sphere of the black in the sphere of six months, in the manner of it combines forces with Lenovo to concoct its phones additional cost-effectively.

Lenovo’s cellular phone engineers are expenditure a plight of generation with their Motorola counterparts to talk ideas on contemporary products and technologies, particular of which might ensue unveiled subsequently spring, assumed Mr. Yang, with no disclosing details.

Motorola is discussing whether and how to practice Lenovo’s factories to manufacture particular of its phones, which would raise the factories’ consumption rate and help reduce overheads, Motorola President turn Osterloh assumed in the sphere of a topical interview. By sharing Lenovo’s vast supply fetter in lieu of smartphones, tablet computers and PCs, Motorola may well win better deals in lieu of components such to the same degree screens and camera modules with the aim of may well help differentiate its smartphones’ skin texture with no raising their prices—something with the aim of wasn’t on the cards as soon as its marketplace share was tiny, analysts say.

“Lenovo can help us get bigger in the sphere of ways with the aim of Google cannot,” assumed Mr. Osterloh. “The main difference is with the aim of we are up for grabs to ensue part of a company with the aim of really understands hardware.”


Lenovo is besides preparing to reintroduce Motorola handsets to serving dishes, someplace the U.S. Company hasn’t sold phones since 2012. Mr. Yang assumed Motorola has a major opportunity in the sphere of serving dishes, for the reason that it can site itself to the same degree single of a handful of high-end brands.

“In the premium segment, near are solitary two players, Apple and Samsung,” and Motorola can ensue an extra single, Mr. Yang assumed in the sphere of an interview. “Many relations in the sphere of serving dishes still remember the Motorola brand…we can reintroduce with the aim of brand,” he assumed.

Still, analysts say winner in lieu of Lenovo and Motorola is far from guaranteed, and they yearn for elevation tougher competition from marketplace leader Samsung, which yearn for likely happen to additional aggressive in the sphere of its attempt to regain lost ground.

“Samsung is not up for grabs to permit Lenovo and Motorola persist to good deal its marketplace share,” assumed Sanford C. Bernstein analyst Alberto Moel. The South Korean smartphone company yearn for likely launch additional reasonable models in the sphere of emerging markets to better compete in contradiction of Lenovo, he assumed.