Lenovo bought Motorola last year and now wants to merge the Mobile Business Group (MBG) with Motorola Mobility.
Lenovo confirmed,
“MBG will continue to drive Lenovo’s overall mobile business, but will now rely on Motorola to design, develop and manufacture smartphone products.”
“Effective immediately, Rick Osterloh, formerly president, Motorola, will be the leader of the combined global smartphone business unit, which will be under Motorola legal entities…”
“Lenovo’s Mobile Business Group will continue to drive Lenovo’s overall mobile business, but will now rely on Motorola to design, develop and manufacture smartphone products,”
the statement added.
Lenovo and Motorola’s mobile division
In the most basic of reasons, the move was to streamline their product portfolio. The western markets are mostly unaware of Lenovo’s presence in the smartphone industry.
The company is using the Motorola tag so that the global market doesn’t get uneasy or curious with its products
Lenovo has endured a 51 percent decline in year-over-year net income (1st quarter of 2015).
Along with this news, Lenovo has also declared it will be slashing 3200 non-manufacturing jobs.
Presently, people working for Lenovo Mobile will now become Motorola employees. Lenovo recently launched ZUK said to be “flagship internet brand”.
ZUK has announced its first Cyanogen OS powered Z1. The phone will be up for sale in Europe and US during September at a price tag of $300.
Motorola will also continue to sell high-end devices in markets where Lenovo doesn’t have a close enough presence.
There is no official news of the existing branding rules by Lenovo and Motorola for their phones. Any “long term branding decision are still in discussion” said a Lenovo spokesperson.
“Both Motorola and Lenovo brands will remain in the market currently”.