A few months after buying Motorola Mobility, a company that was sold by Google (NASDAQ: GOOG), Lenovo realized that this branch is more widely recognizable than Lenovo (NASDAQ: LNVGY) and comes with more “prestige”. Thus the company decided to embody its smartphones department to Motorola. So, after some time all smartphones manufactured by Lenovo will carry Motorola’s brand.
This move will be made once the Chinese colossus completes the presentation of some new products that are currently under development.
The move will help the Chinese company produce better products, while taking the best from both Motorola Mobility and Lenovo, the head of its mobile business group, Chen Xudong, said in an open letter on Chinese messaging service Sina Weibo.
“We want to create profitable growth, not just simply expand our market share,” he said. “A price war won’t bring success.” , said Xudong
Lenovo had given 2.9 billion dollars a few months ago, in order to purchase Motorola Mobility. The financial results of the company were not satisfying enough the last quarter so the change of strategy was found necessary on the department of smartphones.
Of course, there are many who doubt Lenovo’s move to purchase Motorola. It might be a company more widely known than Lenovo but some support that Motorola is a brand that has lost its edge, which was why Google decided to sell it in the first place. Unfortunately, those days are over and Lenovo’s ongoing attempts to resuscitate the brand are showing no signs of gaining momentum.
But then again, the restructuring is a necessary move for the company, said Nicole Peng, an analyst with Canalys. Past Lenovo smartphone products, while not poor in quality or performance, have lacked a unifying design, she said. “I think they need to come up with a design language that is unique,” Peng added.
To sum it up, Lenovo’s move is not a guaranteed success and it will require a lot of effort and resources for the company to get some actual profit both on the short and the long run.