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Monday, August 31, 2015

Motorola will absorb Lenovo Mobile

You can expect a lot more Motorola models in the future. Lenovo has decided that in the smartphone market the brand recognition of Motorola is much stronger than that of its own brand and will integrate Lenovo Mobile into Motorola.
That's not just a relabeling though, the President of Lenovo Mobile Group said that much of the organizational structure of Motorola will remain in place and will take lead of what is now Lenovo Mobile.
Lenovo Mobile will cut down the number of models it produces until eventually all new models come out under the Motorola brand. The combined company will rely heavily on Moto's long experience in research and development.



Lenovo's phone business will not be all Moto though, the company recently launched the ZUK brand. ZUK will work on the international scene and wants to become known for its high-end phones.
Lenovo's last financial results showed a slight drop in shipments in Q1 (16.2 million) and a pre-tax loss of $292 million. This may have been the trigger for Lenovo to shift towards the more recognizable brand.
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