Lenovo will focus on Motorola brand for smartphone, and target mature markets is what the company has indicated as it announced its results for the Financial Year 2016-2017. Lenovo said its Moto Z smartphone, which is a premium device, is on track to hit 3 million shipments and the company has seen a strong performance from the Moto G series.
Lenovo CEO Yang Yuanqing said during the investor call the company had seen strong growth in markets like Brazil and India. In India, Lenovo claims to have seen volume grow 36 per cent year-on-year, and that they were also doing well in Western Europe markets like Britain, Germany France.
However, Lenovo’s smartphone business is struggling in China, and the company admitted it will be reorganizing, rebuilding a stronger team for the market.
“Our strategy is to prioritise mature markets … which need brands and innovative products, whereas emerging markets need efficiency,” said Yang in a press conference, according to Reuters. He also pointed out Lenovo will have “two teams catering to the two kinds of markets with different product lines.”
The Reuters report also quotes a Lenovo spokesperson as saying that as part of the global mobile strategy, the company is shifting focus to the Motorola brand. Currently it has Motorola, Zuk phones and the budget Lenovo phones, which have been fairly popular in India. But it looks like Motorola could end up being the defining brand for smartphones from the company.
The focus on Motorola brand should not come as a surprise. This year itself, we’ve seen the Motorola brand diversify into Moto C, which is the most budget friendly version, along with the usual Moto G being launched. Motorola is also expected to launch Moto Z2 Play, Moto X smartphone, along with the upcoming Moto E and Moto E Plus smartphones.
The latest report raises questions over the future of the ZUK smartphone line, which is available in China and India. Based on Lenovo’s results, the company has seen strong growth in Latin American markets, especially Brazil, but China is where the struggle continues.
Interestingly Motorola brand is also rumoured to be working on a Moto G5S series, which could sport a front camera flash and a dual rear camera option as well. Several images of the phones have been leaked in the past.
For Lenovo, focusing on Motorola as the smartphone brand might make more sense given that the phones are doing well, both in Latin America, India and the Western Europe market.
With Reuters inputs