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Future Lenovo Smartphones Will Be Designed, Developed and Manufactured By Motorola

Lenovo announced its quarterly earnings a few hours ago and the company used that opportunity to announce that all its future smartphones will be designed, developed and manufactured by Motorola.

Motorola seems to be doing very well after the acquisition by Lenovo a while back. Motorola saw its revenue grow to $1.2 billion helping the Mobile Business Group’s revenue reach $2.1 billion for the three months ending June 30, 2015. As you can see, Motorola played a big role with this and Lenovo wants to capitalize on this to be successful. Lenovo has seen increased competition in the smartphone and PC markets but its growth is still steady.

As it goes forward, Lenovo is trying to strategize to ensure it grows. The company is planning to:

  1. Restructuring the Mobile Business Group (MBG) to align smartphone development, production and manufacturing and better leverage the complementary strengths of Lenovo and Motorola. There will be a more-simple, streamlined product portfolio, with fewer, more clearly-differentiated models.  A faster, leaner business model will better leverage Lenovo’s global sales force and accelerate the efficiency actions already underway in its global supply chain. MBG will continue to drive the overall mobile business, but will now rely on Motorola to design, develop and manufacture smartphone products.
  2. Focus and repositioning the Enterprise Business Group to attack the most relevant and attractive market segments, while increasing overall speed and cost-competitiveness.
  3. Accelerating the drive for 30 percent share in PCs by better taking advantage of consolidation, while becoming even more efficient and reducing costs to ensure sustainable, profitable growth.
  4. Drive for greater efficiency across all of Lenovo’s functions.  Lenovo will better leverage technology, the internet and innovative approaches in every function to drive transformation and become faster and more customer-centric.
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