Lenovo Might Discontinue Self-Branded Smartphone

If you are Lenovo mobiles fan then there’s a bad news for you. Lenovo might use the Moto branding for all its upcoming mobiles instead of its own branding.

Lenovo obtained Motorola from Google back in 2014 for a deal of $2.9 billion, after which it become world’s third major smartphone manufacturer. And now, the company has announced that it will release all the future smartphones under its ‘Moto’ brand and not the Lenovo.

Campaign Asia has released a report recently claiming that Lenovo has decided to use the Moto mobiles brands instead of its own branding for all its smartphone. The company took this decision because of its earnings results.

Prior to this, the company was releasing its own-branded smartphone and Moto smartphones separately to keep a unique factor between both brands. Now after the decision, the unique identity of Moto brand will no longer in order as the Lenovo smartphones will also get launched with the same branding.

While so, no official statement from Lenovo has received yet. Lenovo struggled to build appropriate use of the Moto brand in its Q2. The company has earned $2 billion by the sale of its Lenovo and Moto branded phones. The result of Q2 is down 12 percent year-over-year. Shockingly, the overseas smartphone sales of Lenovo are better than in China. Apart from this, no further details about the shift of branding are available as of now, which put a question on if Lenovo will drop its latest mobiles lineup including Phab, Vibe, and Zuk smartphones as well.

Lenovo said that its China shipments are declined 85 percent when it shifted the focus to open market. The company has struggled in higher price bands and product changeover in North America, but that plan didn’t work out.

On the other hand, the Moto branding will help Lenovo in India as the brand is very popular here. The latest Lenovo mobiles offered in India comprises Moto Z and Moto Z Play. Recently the company also had released its Phab 2 Plus smartphone in India.

In Asia Pacific and India, Lenovo has surged its mobile shipments. The smartphone shipment in India in Q2 has risen 15 percent year-over-year. The shipments of Moto smartphones were almost increased by 40 percent from the quarter prior to it due to the success of Moto G and the newly launched Moto Z and Moto Mods.

Lenovo is facing a competition from both internal, due to Moto brand, and from the rivals like Xiaomi. However, the official confirmation in regard to the Moto brand as the sole brand for the company is awaited.

Lenovo is also shifting the leadership of its smartphone business in China. The company has replaced the current Co-President and SVP of its Mobile Business Group Xudong Chen with Gina Qiao who was formerly the SVP of Human Resources.

Moreover, the company has made some senior hires from Alcatel-Lucent, Microsoft, and Intel. The hiring was aimed to travel from a hardware company into a company which is more focused towards the customer orientation on devices, cloud services, and artificial intelligence.


Leave A Reply