Lenovo says Motorola acquisition still right decision

Lenovo Group Ltd chairman and chief executive Yang Yuanqing defended the company’s $2.91 billion acquisition of handset brand Motorola on Thursday, saying the unit will help it become a global smartphone player despite a steep fall in shipment volumes.

“I still believe this acquisition was the right decision,” he told Reuters in an interview Thursday after Lenovo announced quarterly revenue below expectations.

Yang said a restructuring effort to streamline Motorola and Lenovo’s legacy smartphone division will take two to three quarters, while the company will prioritise global sales over the Chinese market, which has proved “definitely challenging.”