Lenovo CEO Vows To Turn Around Motorola in 6 Quarters

LenovoEUs CEO is oozing confidence about the companyEUs chances of turning Motorola around. In fact, Yang Yuanqing predicted the handset maker would return to profitability in the next four to six quarters.

Lenovo acquired the Motorola Mobility smartphone business from Google for $2.91 billion. The deal includes a portfolio of smartphones like the Moto X and Moto G and the DROID Ultra series. Lenovo will take ownership of the future Motorola Mobility product roadmap.

With a strong PC business and a fast-growing smartphone business, Lenovo expects the deal to strengthen its position in the handset market. With Moto, Lenovo automatically gains a strong market presence in North America and Latin America, as well as a foothold in Western Europe, to complement its business in emerging markets around the world. But will that be enough to return the company to profitability?

DonEUt Be Scared of the Loss

According to Bloomberg, Yang believes so -- and he plans to do it without cutting jobs. ThatEUs no small promise, considering Motorola reported operating losses totaling more than $1 billion in 2013, Bloomberg's data reveals.

EUDonEUt be scared by the $1 billion-a-year loss,EU Yang told Bloomberg. EUWe will improve that even from day one. Google is very good at software, ecosystems and services. But we are stronger in the manufacturing of devices.EU

Yang is betting, in part, on synergies from buying IBMEUs PC business and brand in 2005 and the recently announced acquisition of Big BlueEUs low-end server business. But with smartphone market expected to decline, according to IDC, will Lenovo revive Motorola in time?

Targeting the Low End

Despite the high growth expected in many emerging markets, 2014 will mark the year smartphone growth drops more significantly than ever before, with only a 19.3 percent year-over-year growth, according to the firmEUs Worldwide Quarterly Mobile Phone Tracker.

Of course, thatEUs just...

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