Lenovo hands Motorola the smartphone creation reins - winghareposto

Lenovo's Motorola Mobility division will take over the society's smartphone development and manufacturing, as part of a reorganization that the company hopes wish cut costs and revitalize its French telephone business.

The move will help the Chinese companion produce bettor products, while winning the topper from both Motorola Mobility and Lenovo, the head of its mobile business mathematical group, Chen Xudong, said Thursday in an open letter on Chinese messaging service Sina Weibo.

Last year, the keep company acquired Motorola Mobility for $2.91 billion As a way to expand its French telephone business outside of China. But for Lenovo, the key challenge has been juggling the Motorola team with its existing smartphone operation, according to analysts.

To that degree the acquisition hasn't quite paid polish off. In the second quarter, Lenovo lost its place among the five largest smartphone vendors, said search firm Canalys.

In addition, the Motorola stage business is standing posting a loss for Lenovo. So earlier this month, amid moderating earnings, Lenovo announced it would lay off 3,200 staff, in an attempt to streamline its business operations.

Some of those layoffs will target Lenovo's Motorola team. The cost of running that business is too graduate, and the company has vowed to defecate information technology profitable over the next some quarters.

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With Motorola taking a larger role in phone development, Lenovo is aiming to create products that can better jump out, Chen said. On the sales side, the company will leverage Lenovo's existing distribution channels to promote the phones.

"We want to create paying growing, non just simply exposit our commercialise share," helium said. "A price war won't bring achiever."

The company, however, will go forward using both the Lenovo and Motorola brands, Chen added. The Motorola team will also be in charge of Lenovo's smartwatch development.

The restructuring is a incumbent move for the company, aforementioned Nicole Peng, an analyst with Canalys. Past Lenovo smartphone products, while not poor in quality or carrying into action, have lacked a centripetal design, she aforementioned.

"I call back they postulate to scrape with a design language that is unique," Peng added.

Lenovo might happen roughly of that with its Motorola products, which have emphasized customizable covers for theirs phones, and using a more vanilla version of Android.

Merely early this month, Lenovo's Chief operating officer said the Motorola business would still need to make changes. This includes releasing products at a quicker pace, to ensure their specs remain competitive in the market.

"Whether Motorola will gain more power or importance, let's wait and see," Peng said. "There will be Lenovo people in this team, who will be responsible for sales and marketing."

Incoming month, Lenovo volition be material possession a product unveiling for a late Motorola twist.

Source: https://www.pcworld.com/article/423273/lenovo-leans-on-motorola-team-to-handle-smartphone-development.html

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