Lenovo has recently been rumored to only use the Moto branding on its smartphones in the future, as the company narrows down its product line. Another report suggests that Lenovo will shift its focus to producing premium Moto branded smartphones to make up for its recent struggles in the smartphone sector.
Lenovo is undoubtedly struggling to thrive on home soil. The Chinese manufacturer has slumped to 8th place last year in terms of smartphone sales in China, and has reportedly dropped out of the top 10. Competition by the likes of OPPO, Vivo, Xiaomi and rising giants like Gionee have proven to be overwhelming for old timer Lenovo.
According to GizmoChina, the company has announced that it would restructure its own smartphone business, shifting its focus to making more high end models under the Moto brand. This supports a recent report that Lenovo will be shutting down its ZUK subsidiary, which did not flourish after two years of existence.
A probable explanation for Lenovo’s struggle in the Chinese market could be due to its entry level smartphones not being affordable enough as compared to its predecessors, coupled with the fact that its high end Moto handsets only cater to a smaller part of the Chinese market, considering the price point(s).
Only time will tell whether this move by Lenovo will cause its smartphone business to bounce back like in its glory days. Would you prefer a Moto or Lenovo branded smartphone?