Lenovo to streamline smartphone supply chain after Motorola Mobility purchase
After the Motorola deal, the computer giant now faces task of streamlining production processes
Yang Yuanqing, the chairman and chief executive at computer giant Lenovo, declared in 2011 that the company sees the global market for smart mobile devices as "a battle we cannot lose".
"We must win no matter how much money we need to invest," Yang told the South China Morning Post in an interview in San Francisco.
Lenovo, the world's largest supplier of personal computers, proved that commitment last week after landing its biggest-ever acquisition, a blockbuster deal to buy struggling smartphone-maker Motorola Mobility for US$2.91 billion from Google.
Lenovo must now plot the reform of its complex manufacturing supply chain for smartphones in a bid to make it more competitive with those of industry leaders Samsung Electronics and Apple.
The success of the Motorola deal, which is still subject to regulatory approval, will ultimately depend on Lenovo's ability to reshape and quickly integrate the two companies' production supply chains.
Wong Wai-ming, the chief financial officer at Lenovo, said on Thursday that the goal was to "come out with a very good product portfolio that we can deliver in the most cost-effective way".
"We see a lot of synergy between Lenovo and Motorola Mobility, which outsources its smartphone manufacturing," Wong said. He added an "execution plan" would determine how much their production supply chains would be reshaped.