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Motorola is breathing new life into Lenovo's mobile phone business

By Gabe Carey
Feb 4, 2016
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  1. The PC market may be sluggish at the moment, but for Lenovo it's just starting to pick up, due in part to its 2014 acquisition of Motorola from Google. In this quarter alone, the company garnered an impressive $300 million in profits despite sales being eight percent lower than last year, according to a press release.

    Thankfully, ownership over Motorola gave Lenovo the boost it needed to finally put an end to its losses in the mobile phone business. Back when it originally purchased Motorola, Lenovo promised to "make the Motorola business profitable in four to six quarters." This news demonstrates Lenovo's commitment to actually delivering on its promises, or at least its profiency in favorable chance.

    Earnestly enough, Lenovo has apparently pulled the right strings with Motorola's device sales as well, with the soon-to-be Lenovo Moto devices rising 25 percent over their previous quarter.

    Though it notoriously pre-installed adware on its laptops around this time last year, Lenovo somehow managed to power through, bumping its PC market share to 21.6 percent, in contempt of the PC business as a whole dropping an entire 10.9 percent. As expected, China, Lenovo's native country, is responsible for a sizable portion of the sales boost, where the computer company shines at a massive 40 percent market share.

    It's worth noting, however, that although Lenovo is seeing profit gains, its sales are actually diminishing -- in both the PC and mobile spaces, though this seems to be the case with every PC maker right now (yes, even Apple).

    Nevertheless, the Beijing-based company has found ways to cut down massively on its expenses -- like $1.5 billion massive. And, at the same time, Lenovo has even found growth in other areas, like in its server business, where it's expected to bring home $5 billion this year.

    Regardless of where it's coming from, executives at Lenovo are likely bouncing off the walls, or however corporate suits express enthusiasm, from their return to the black after breaking a chain of 24 profitable periods just last quarter.

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  2. RustyTech

    RustyTech TS Guru Posts: 865   +434

    Will they embed spyware, addware, and perhaps viruses into the phones as they do with computers?
     

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