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    Default Lenovo CEO says he can cut Motorola's losses in just a few quarters

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  2. #2  
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    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    the only way to cut Motorola losses that quickly is to fire every US employee and replace them with chinese slave laborers.
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  3. #3  

    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Quote Originally Posted by Cozume View Post
    the only way to cut Motorola losses that quickly is to fire every US employee and replace them with chinese slave laborers.
    We have a winner. I have many friends who once worked for IBM in their PC group. The operative word is "once". I would bet that within 3-6 months 70+% of the US Moto workforce will be gone.
  4. Thread Author  Thread Author    #4  
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    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Quote Originally Posted by eshropshire View Post
    We have a winner. I have many friends who once worked for IBM in their PC group. The operative word is "once". I would bet that within 3-6 months 70+% of the US Moto workforce will be gone.
    ..because Google didn't cut any Motorola employees either..

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  5. #5  
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    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Quote Originally Posted by Ry View Post
    ..because Google didn't cut any Motorola employees either..
    Sure they did. But they didn't completely replace them with chinese slaves. Hence the losses.
  6. #6  

    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    As one who has, for a long time, favored Android in general and Motorola in particular, I always cringe a little when I see a link to almost anything posted by the Verge folks, but at least they include source links so I can get to the meat of the topic without their bias/spin.

    In this case I hope folks will also go read these two articles:

    Lenovo Projects End to Motorola Losses With China Phone - Bloomberg

    Q&A: Lenovo CEO On How To Turn Around Motorola - Digits - WSJ

    My take (hope) on the whole Lenova deal...they just might make it work *and * we might still see a better Moto X offspring!

    In regards to the Woodside departure...expected with a purchase like this. I want to see if Punit Soni and his team are kept in place!
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    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    can you provide a quick summary of the articles for those of us too lazy to read them?
  8. #8  

    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Uhh...I did.

    they just might make it work *and * we might still see a better Moto X offspring!
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    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Quote Originally Posted by Tom in Bristol View Post
    Uhh...I did.
    too high level of a summary!
  10. Thread Author  Thread Author    #10  
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    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Quote Originally Posted by Tom in Bristol View Post
    In regards to the Woodside departure...expected with a purchase like this. I want to see if Punit Soni and his team are kept in place!
    This is more important than Woodside. My confidence level on Lenovorola is mostly tied to Punit Soni and his team.
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  11. #11  

    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    How Lenovo will realize growth from deal:

    Achieve significant material savings from lower material costs, and global scaling.


    Lower material costs means no more kevlar, no more Gorilla Glass, no more water-resistant nano coating = overall lower quality phone. All of those things, I loved about Motorola. I owned and used a Motorola Photon Q for over a year and the screen didn't have a single scratch with no screen protector. And you should all do yourselves a favor and look on YouTube for videos of the Moto G working while submerged underwater. The Moto G is my gf's first ever Android phone, and it's a solid choice, regardless of the price. Sad to see that this will all go away once Lenovo takes over.

    Global scaling means cheap Chinese labor. Bye-bye Texas plant. Bye-bye "Made in the USA".
  12. #12  

    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    No...lower material costs means much higher volumes of materials purchased and that's in line with global scaling meaning selling Moto worldwide by a company that's been doing both far more than Moto ever could by being almost exclusively a USA business.
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  13. Thread Author  Thread Author    #13  
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    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Quote Originally Posted by Geodude074 View Post
    How Lenovo will realize growth from deal:

    Achieve significant material savings from lower material costs, and global scaling.


    Lower material costs means no more kevlar, no more Gorilla Glass, no more water-resistant nano coating = overall lower quality phone. All of those things, I loved about Motorola. I owned and used a Motorola Photon Q for over a year and the screen didn't have a single scratch with no screen protector. And you should all do yourselves a favor and look on YouTube for videos of the Moto G working while submerged underwater. The Moto G is my gf's first ever Android phone, and it's a solid choice, regardless of the price. Sad to see that this will all go away once Lenovo takes over.

    Global scaling means cheap Chinese labor. Bye-bye Texas plant. Bye-bye "Made in the USA".
    Like Tom in Bristol said, it's not about cheap parts but the ability to buy larger quantities. Buying in bulk usually cuts costs but there has to be a market for the product.

    And to the Gorilla Glass point specifically, Lenovo already has a relationship with Corning and uses Gorilla Glass in some of it's products - Gorilla Glass 3 can be found in the Lenovo ThinkPad Tablet 2 and Lenovo Vibe X. If anything, this likely helps Lenovo get more Gorilla Glass in other/future products.
    a.k.a. RyZR from HoFo
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  14. #14  

    Default Lenovo: We'll turn Moto profitable in a few quarters

    Yesterday, I made a post in another thread, defending the business practices of Lenovo, and saying they had some very smart people. This led me to believe they would do the right thing by Motorola Mobility and allow them to operate independently and continue to come out with innovative devices. However, that doesn't seem like it will be the case:

    Lenovo CEO: We'll Turn Motorola Profitable In A Few Quarters, Bring The Brand Back To China, Move 3500 Workers To Lenovo

    The final paragraph is basically one, big "Oh F--k" section. So not only could we not have the Moto X 2 to look forward to (which some people already feared), but we may NEVER get one. And usually when companies make their objective to be "profitable" as soon as possible, the first thing to go is quality and innovation. Not good news.
  15. #15  

    Default Re: Lenovo: We'll turn Moto profitable in a few quarters

    I saw that and I'm not fearful at all. Its just wait and see.

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  16. #16  

    Default Re: Lenovo: We'll turn Moto profitable in a few quarters

    Quote Originally Posted by Jonathan Rosenthal View Post
    Yesterday, I made a post in another thread, defending the business practices of Lenovo, and saying they had some very smart people. This led me to believe they would do the right thing by Motorola Mobility and allow them to operate independently and continue to come out with innovative devices. However, that doesn't seem like it will be the case:

    Lenovo CEO: We'll Turn Motorola Profitable In A Few Quarters, Bring The Brand Back To China, Move 3500 Workers To Lenovo

    The final paragraph is basically one, big "Oh F--k" section. So not only could we not have the Moto X 2 to look forward to (which some people already feared), but we may NEVER get one. And usually when companies make their objective to be "profitable" as soon as possible, the first thing to go is quality and innovation. Not good news.
    I find your post disheartening.
    Lenovo has a history of saving IBM's brand; hopefully it will do the same with Motorola.
    Nowhere have I seen any mention of Lenovo being a tech innovator.
    That might be Moto's main contribution to the Lenovo brand.
    I hope this is pursued or at least allowed.
    The Moto-Google tryst had gallant offspring in the Moto X, G .
    The future held great promise.
    Alas.
    Wasn't meant to be.
    Hope Samsung is happy with their attack on competition.
  17. #17  
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    Default Re: Lenovo: We'll turn Moto profitable in a few quarters

    I think they will integrate Motorola's innovations into their own products while also using the Motorola brand overseas. The question is what happens to Motorola products here, will they be Motorola phones or will they be Lenovo phones with an M on the back.
  18. #18  

    Default Re: Lenovo: We'll turn Moto profitable in a few quarters

    As a long time user of Lenovo stuff, both IBM and later, I can attest to the fact that they do not make major cuts to quality. They engineer the products but invariable make them the same or better so I am comfortable with Lenovo taking the helm of a failing product line yet again.

    Wait and see. OK, so there may not be another X or G, but there will be phones.
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  19. Thread Author  Thread Author    #19  
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    Default Re: Lenovo: We'll turn Moto profitable in a few quarters

    Quote Originally Posted by JoeNM84 View Post
    I think they will integrate Motorola's innovations into their own products while also using the Motorola brand overseas. The question is what happens to Motorola products here, will they be Motorola phones or will they be Lenovo phones with an M on the back.
    So far they've said it'll be the Motorola brand.
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  20. Thread Author  Thread Author    #20  
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    Default Re: Lenovo: We'll turn Moto profitable in a few quarters

    Quote Originally Posted by Jonathan Rosenthal View Post
    Yesterday, I made a post in another thread, defending the business practices of Lenovo, and saying they had some very smart people. This led me to believe they would do the right thing by Motorola Mobility and allow them to operate independently and continue to come out with innovative devices. However, that doesn't seem like it will be the case:

    Lenovo CEO: We'll Turn Motorola Profitable In A Few Quarters, Bring The Brand Back To China, Move 3500 Workers To Lenovo

    The final paragraph is basically one, big "Oh F--k" section. So not only could we not have the Moto X 2 to look forward to (which some people already feared), but we may NEVER get one. And usually when companies make their objective to be "profitable" as soon as possible, the first thing to go is quality and innovation. Not good news.
    The final paragraph in that Android Police article is just speculation by that writer. Sidenote: I can't take a site called "Android Police" seriously.

    If you read the Q&A, this is a long-term play by Lenovo to leverage the Motorola brand. I look to what they did with the ThinkPad brand and overall, the quality and "innovation" (seriously, most over-used term) still remain in my eyes.
    a.k.a. RyZR from HoFo
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  21. #21  

    Default Re: Lenovo: We'll turn Moto profitable in a few quarters

    Quote Originally Posted by Ry View Post
    I can't take a site called "Android Police" seriously....

    ...,"innovation" (seriously, most over-used term) .
    Who would buy anything named after a fruit.
    Let alone think they could do that which cannot be named.
  22. #22  

    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Quote Originally Posted by Ry View Post
    ..because Google didn't cut any Motorola employees either..

    Posted via Android Central App
    Very true, Motorola is a much smaller company since the Google purchase. But they still ran big losses, but Google could absorb them without much impact on their bottom line. Lenovo has to end the losses very fast.

    I think they bought Motorola for the name, distribution and patent access.

    Sent from my SCH-I545 using Tapatalk
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    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Quote Originally Posted by eshropshire View Post
    Very true, Motorola is a much smaller company since the Google purchase. But they still ran big losses, but Google could absorb them without much impact on their bottom line. Lenovo has to end the losses very fast.

    I think they bought Motorola for the name, distribution and patent access.

    Sent from my SCH-I545 using Tapatalk
    Remember, Lenovo is also buying IBM's x86 Server business.

    WSJ: How will the two deals affect Lenovo’s finances?

    Wong: We have $3 billion in cash at hand, and we have also raised $1.7 billion in loans. This means we have $4.7 billion in cash that we can use. And the cash portion of our payments for the two acquisitions will be about $2.7 billion. So even after we complete the deals, we will still have about $2 billion in cash. Given that we will also have cash flow from our operations, we can continue to fund our growth.
    Shortly after the deal broke, it came out that supposedly Lenovo was an original suitor for Motorola before Google. Google only wanted the (mobile) patents but Motorola probably didn't want to split the company up. And Lenovo probably didn't want the set-top business.
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  24. #24  

    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Quote Originally Posted by Ry View Post
    Remember, Lenovo is also buying IBM's x86 Server business.
    Yes that is why Lenovo needs to end the red in Motorola fast. They have already burned through a lot of cash with these two deals. My worry is they are going to look at their market share in China and Motorola's US market share and decide that their Lenovo team takes the lead.

    BTW, being a hardware company tons of that cash is already committed to their suppliers. Also a 1.7 billion loan is debt and has to be serviced. A pure hardware company like Lenovo has a much different financial dynamic than a software company. 4.7 billion is not a lot of cash for a company the size of Lenovo. It's good if they stay out of the red.

    Sent from my SCH-I545 using Tapatalk
  25. #25  
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    Default Re: Lenovo CEO says he can cut Motorola's losses in just a few*quarters

    Quote Originally Posted by Ry View Post
    Shortly after the deal broke, it came out that supposedly Lenovo was an original suitor for Motorola before Google. Google only wanted the (mobile) patents but Motorola probably didn't want to split the company up. And Lenovo probably didn't want the set-top business.
    And as soon as Google bought Motorola, they split the company up.
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