Lenovo’s Moto Z brand could lift its earnings

Lenovo needs to get its act together before it loses too much market share to Oppo, Vivo and Huawei.

Although Lenovo’s financials have stood the test of time, it doesn’t mean that the company is immune to a tepid smartphone market. Lenovo reported that its mobile division lost $112 million with its sales, including its Lenovo and Moto handsets, doing a nose dive by 23%.

Not so long ago, Lenovo was the Number 1 smartphone manufacturer in China, with its mobile sales, including tablets, beating handsdown the sales chart of personal computers. However, now it has lagged behind companies such as Vivo, Oppo and Huawei.

Lenovo paid $3 billion to acquire Motorola from Google. Those where the days when the mobile business was doing well. A lot has changed now.

Despite pressure from analysts to spin-off Motorola, despite the immense pressures of the drag in PC sales, Lenovo is holding steady.

CEO Yang Yuanqing has disclosed that the company is rebuilding its team under new chief Gina Qiao, and aims to break even within a year or two.

“Mobile should be our core business as well [as PCs],” said Yang to Reuters.

Luckily its PC divisions is doing well, particularly to corporates, and despite sales registering a flat $12.2 billion, the company has still managed to hammer out a profit.

Lenovo has the potential to do much better: its Phab 2, could have been advertised as the first Google Tango smartphone, but questionable components and clunky software did it in.

With the Moto Z however, Lenovo seems to be doing the right thing: it has the potential to win back a huge fan following.

Is Gina Qiao listening?

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