Friday, 28 August 2015

Lenovo Confirmed the Reports on merging with Motorola: So, How does it benefit Lenovo ?

Lenovo is one of China's four top major brands, which ranks among the four domestic brands basically rolling out low-end phones. Lenovo has started the process of integrating its Mobile Business Group (MBG) into Motorola Mobility.

“Effective immediately, Rick Osterloh, formerly president, Motorola, will be the leader of the combined global smartphone business unit, which will be under Motorola legal entities…[Lenovo’s Mobile Business Group] will continue to drive Lenovo’s overall mobile business, but will now rely on Motorola to design, develop and manufacture smartphone products,” the statement added.

As a part of collaboration,  Lenovo Mobile employees will join Motorola staff. Motorola, having higher headcount, will lead Lenovo Mobile team, report added. Lenovo Mobile's workshop will also be incorporated into Motorola Mobility. Once the merger is complete, Lenovo's ZUK will become the company's "flagship Internet brand" while Motorola will continue to sell high-end devices in international markets, where it has far more presence than Lenovo. 

The solution now seems to be clear: a report from Xiaomi Times indicates Lenovo will soon dissolve its own smartphone branding, instead leaving everything to Motorola’s doings. Specifically, according to Lenovo Mobile Group President Chen Xudong, Lenovo Mobile will eventually be merged into Motorola. “The new organizational structure will be immediately released,” said the SEO in an interview with Interface News.

Let us Remind you Lenovo is much expanded Company Including (Lenovo) - Motorola - ZUK{Elephone} while elephone is backbone of ZUK helping them to craft the ZuK Z1 series for LENOVO.

Lenovo in the first quarter of this year fell by more than a Fourth No. VIVO positioning them at no. 5. According to IDC, sales of Lenovo + MOTO also Huawei and Xiaomi, shipments fell 30% compared to the same period last year. Lenovo + MOTO mobile phone sales continue to decline, while in the second quarter (Lenovo's first quarter, ended in June this year) mobile services division lost $ 292 million before tax. 

What would it mean for Lenovo ? 

On paper, this is a great idea. Lenovo has some fantastic looking devices, though as a company it lacks the smartphone brand-awareness that would otherwise help it to be successful in the global market. Motorola in turn, has a very solid product line-up, but has only a sparse three or four offerings to choose from. Well this might also mean that Lenovo Sub-Budget Phablet will get more expensive with new designed cue but the benefit what comes to it is that being Motorola a Google representative the Lenovo user will get latest Android Update on time same as Moto Flagship device get. This might be the right time that Lenovo will Shed their bad experienced User Interference that does not have support for OTG. Well we will likely to see bright future for Lenovo in coming days after merging with Motorola.   


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