Lenovo has launched a bunch of smartphones this year which includes the ones from it’s Motorola division as well. The company recently launched the Vibe K5 Note in India. But the question is, how is it working out for the company so far? Maybe, up to certain levels. But the company is coming up with some new plans for turning things around for the next fiscal year. The company is expecting to bring in some changes by shifting the focus to the higher end devices.
Lenovo’s computer industry is certainly not doing any good to them, so now apparently it’s counting on covering that up with the smartphone business. Well, it makes a lot of sense. With the growing needs of the smartphones in the world and having a brand name like Motorola in your back pocket, what else can you possibly think of? So yes, Lenovo is indeed counting on the revival of the Motorola smartphone business.
If you didn’t know already, Lenovo bought Motorola for over $2.5 billion. And now the company is counting on its upcoming premium gadgets to stabilise their business in the second half. Also integrating mobile business takes time. As a matter of fact, integrating any business takes time. It took a lot of time for them to integrate the PC business back when they acquired it from IBM. The CEO of Lenovo stated the same.
He also stated that they are hoping to turn completely around the business in the next fiscal year. However, he didn’t mention any target for the profit margin. Also note that Lenovo has slowly started to put its name up there with other Chinese competitors like Huawei, Oppo and Vivo. But now to stabilise them further, the company is further planning to invest ‘heavily’ on advertising and marketing in an attempt to make it to the top-three player in the global smartphone market. The timeframe for the same was not mentioned, though.
Lenovo’s first-quarter profit results exceeded the estimates. However, that was achieved after cost cutting and asset sales. That somehow managed to make up for the slow movement in the market. According to reports, the company reduced some employee benefits costs and also unloaded some non-core assets and thus made some easy money off of it. But now the company is planning to expand internationally with critical investments such as cloud computing, artificial intelligence, robotics and internet services. Well, we have to see this works out them in future as time will tell us how far they have come. Stay tuned for more info on this.