Motorola will soon be the sole smartphone maker while Lenovo will continue with the tablets and PC bussiness
It is a common knowledge that Lenovo formally owns Motorola Mobility. Both the companies keep on working independently.
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Lenovo is making their own handsets while Motorola produces their own. Both brands present altogether different devices.
Devices from both the companies do not seem particularly complementary to one another. However this is going to change.
Lenovo has finally decided to take a step. As per a report it appears that Lenovo Mobile, the division that handles the mobile part of the company, will be converged with Motorola.
After the merger, Lenovo will ultimately be dissolved. This implies that Lenovo the brand will keep making PCs and tablets.
Motorola, on the other hand, will keep concentrating on cell phones for both Lenovo and Motorola. As part of the restructure, Lenovo Mobile employees will join Motorola staff.
Motorola, having higher headcount, will lead Lenovo Mobile team. Lenovo Mobile's workshop will also be incorporated into Motorola Mobility.
The report by xiaomitoday apparently refers to Lenovo Mobile Group President Chen Xudong as saying, “The new organizational structure will be immediately released.”
It should be kept in mind that Lenovo has yet to release a press release on this. That being said we assume it doesn't generally come as a shock.
Lenovo had already announced that Motorola would be in charge of designing, developing, and manufacturing Lenovo’s smartphones.
So by merging both divisions together, it does help to make a unified front. Given that Motorola’s branding is stronger in the mobile space we can imagine that this will help Lenovo’s mobile efforts in the future.
Lenovo's last financial results indicated a drop in shipments in Q1 (16.2 million). Also there was a pre-tax loss of $292 million.
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After this we can think that it is the best choice for Lenovo to move towards something big.