In an unexpected game changing move, Chinese OEM Lenovo has decided to merge its mobile business under its subsidiary Motorola Mobility.
The move apparently seems to be triggered by the company's financial reports of last quarter, where it was clearly visible that the mobile division of the company was mainly running on the revenue profits generated by Motorola. It seems like the company officials have eventually accepted the fact that Motorola has a better brand name internationally than Lenovo branded devices.
It definitely doesn't symbolize that Lenovo made devices were sub-par in comparison with Moto by any means though. But with numerous mobile companies flooding the market, brand naming has become important like never before.
From now on Lenovo will cut down the number of devices they launch every year. On the other hand there will be a gradual rise in Moto devices. Wonder if they will launch any new Moto Series? Presently they have the Moto G, E and the X Series devices.
Motorola will be taking care of most part of the R&D for the company's mobile devices. It's not just a relabeling though, as Lenovo will soon be merging their existing mobile division with Motorola. Hence the company structure of Lenovo will be in tantrums soon. Lenovo though assured that most parts of the existing company structure of Motorola will be kept untouched.
Nevertheless Lenovo isn't completely backing away from the mobile market though. The company will continue with its newly incepted brand ZUK. Unlike Lenovo's existing mobile division that lay a stress on offline sales, ZUK is mainly the company's answer to the online models launched by Xiaomi, Huawei etc.