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Lenovo’s Smartphone Business Will Be Absorbed by Motorola Mobility
In light of the earlier official statements made by the company for its quarterly results, Lenovo Mobile will be restructured affecting the product line as well as its brand. Even so, the two companies continued to hold on to separate mobile divisions and, not so long ago, Motorola unveiled three brand new smartphone models including the Moto X Play, Moto X Style, and Moto G (third gen).
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Lenovo might find some of that with its Motorola products, which have emphasized customizable covers for their phones, and using a more vanilla version of Android.
Motorola should up the game this time with exceptional battery life and some new features because yet to be announced Samsung Gear S2 is surely going to give a tough time to its competitors.
“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”, a Lenovo representative told NDTV Gadgets via an emailed statement on Wednesday.
Putting Lenovo Mobile’s future in Motorola’s hands is a huge vote of confidence.
“Both Motorola and Lenovo brands will remain in the market now”.
“Osterloh will continue to report to Chen Xudong, senior vice president, and president, Lenovo MBG”. A Motorola India spokeswoman confirmed to TOI Tech that this organizational restructuring is now in the works.
Motorola also will take more of a leadership role in smartphone design, Lenovo added. The Lenovo India media relations team sent the following statement on the matter: “As communicated in our recent Q1 FY15-16 earnings, to create a faster, leaner business model, we will align our smartphone development, production and manufacturing and better leverage the complementary strengths of Lenovo and Motorola to quickly drive growth”. It remains to be seen whether the same devices get branded under both Motorola and Lenovo depending on the market and the brand value.
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Last year, the company acquired Motorola Mobility for $2.91 billion as a way to expand its handset business outside of China.