Another quarterly report has been out and this time, it’s Motorola’s report on how well they are doing in Q4 for the year of 2014! It’s the first quarter that Motorola has been with Lenovo, and all seems to be following their plans thus far.
The acquisition of Motorola by Lenovo has been completed last year with a US$2.9 billion (MYR10.38 billion) deal made by Google and Lenovo. With the release of the quarterly report, Lenovo has said that their plans in making Motorola to become a profitable investment within six quarters is on track.
IDC research has revealed that because of Motorola, Lenovo has 6.6% of market share in the global smartphone market – making it third place behind Samsung and Apple! Comparing that figure with last year’s figure, they’ve increased by 78%. Talk about impressive results!
Bloomberg’s analysts and consultants have expected Motorola to have a net profit of $184.6 million (MYR661 million). However, in reality, Lenovo has proved them wrong and made even more. They had a net profit of US$253 million (MYR0.9 billion). Even though global PC market has been deteriorating, Lenovo has even increased their PC sales by 5%.
In current time, Lenovo is available in 67 countries and counting – an achievement that is notable. As opposed to Chinese mobile phone manufacturer giants who make their profits mostly from within China, Lenovo has 60% of their sales of phones out of China.
During Q4 2014, Motorola seems to be doing well and very well on track with Lenovo’s plans. The success will not stop as this is just the beginning for Motorola – Lenovo has much bigger plans for them in store this year. In the past years and quarters, it costs hundreds of millions of dollars for Google to deal with Motorola. However, Lenovo is confident to turn the fate around quickly.
Motorola has just been re-introduced in China, and in the rapid growing market of India, they have sold about 3 million of smartphones after being in the Indian market for about a year. The success factor for this is due to the affordable product of Moto G and Moto E flagships – they offer reasonable specifications in a competitively priced options.
Following Motorola’s success being on the 5th spot behind Samsung, Micromax, Lava, and Karbon, Motorola and Lenovo now make up two thirds of the largest manufacturer in the world, as reported by Counterpoint Research.
With Lenovo directing Motorola’s future towards India’s fast-paced growth and other factors, Motorola will surely be one to watch in the near future!