Lenovo Folds Smartphone Unit under Motorola

In their efforts to revitalize its handset business, Lenovo Group has decided that its Motorola Mobility division will take over the company’s smartphone development as well as manufacturing. This reorganization is due to the company’s hopes to cut costs while enabling the Chinese company to produce better products. Chen Xudong, the head of Lenovo’s mobile business group, has said in an open letter that this move will help provide for better products by taking the best technology and resources from both Lenovo and Motorola Mobility.

Lenovo recently acquired Motorola Mobility just last year for $2.91 billion in order to expand its handset business beyond China. But according to analysts, Lenovo’s main challenge has been managing the Motorola team while simultaneously dealing with its existing smartphone operation. Lenovo is currently striving to create products which can better stand out, and hopes that Motorola’s role in phone development will help to leverage Lenovo’s existing distribution channels to promote their phones.

"We want to create profitable growth, not just simply expand our market share," said Chen. A price war won’t bring success.

Despite the restructuring of the company, Lenovo will still continue using both the Lenovo and Motorola brands. The Motorola team is actually in charge of Lenovo’s smartwatch development as well. Analysts have suggested that Lenovo’s weak point is in their lack of a unifying design. While Lenovo smartphone products are not poor in performance or quality, they still lack a design language that is unique. Lenovo might find some help with this in their Motorola team, as Motorola products utilizes a more standard version of Android while emphasizing customizable covers for their phones. In the upcoming months, Lenovo intends on holding a product unveiling for a new Motorola device.

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