The Chinese manufacturer, Lenovo is planning to merge its mobile unit to its subsidiary Motorola. As per the reports unveiled be a Chinese website, Xiaomi Today, The Lenovo will run its mobile unit and Motorola as a single entity, worldwide.
The Lenovo India media relations team reported, “As communicated in our recent Q1 FY15-16 earnings, to create a faster, leaner business model, we will align our smartphone development, production and manufacturing and better leverage the complementary strengths of Lenovo and Motorola to quickly drive growth. Lenovo’s Mobile Business Group (MBG) will continue to drive the overall mobile business, but will now rely on Motorola to design, develop and manufacture smartphone products. Both Motorola and Lenovo brands will remain in the market currently, and we are excited about our latest product announcements such as the Lenovo Vibe Shot, which we are currently launching.”
A company’s spokesperson told that organizational reconstruction of Lenovo is currently in progress and it is being expected that the current president of Motorola Mobility, Rick Osterloh will be responsible person for the both of the smartphone making brands.
As the Motorola Mobility is a subsidiary of Lenovo, the firm is merging the two brands into one globally, they will be however, treated as different brands in the Indian smartphone market for some time.
“Long term branding decisions are still in discussion,” the company further added.
Presently, Motorola Mobility is an American mobile device computer technology company, headquartered in Chicago, Illinois, United States. The company was formed on January 4, 2011 by the split of Motorola Inc. into two separate companies; Motorola Mobility took on the company’s consumer-oriented product lines, including its mobile phone business and its cable modems and set-top boxes for digital cable and satellite television services, while Motorola Solutions retained the company’s enterprise-oriented product lines. It is a subsidiary of the multinational personal computer and mobile device maker Lenovo.
The company primarily manufactures smartphones and other mobile devices running the Android operating system developed by Google Inc.; in August 2011, only several months after the split, Google announced that it would acquire Motorola Mobility for US$12.5 billion. Google’s stated intent for the purchase was to gain control of Motorola Mobility’s portfolio of patents, so it could adequately protect other Android vendors from lawsuits.
The deal closed in May 2012, after which it also sold its cable modem and set-top box business to Arris Group. Under Google ownership, Motorola Mobility increased its focus on the entry-level smartphone market, introduced one of the first Android Wear smartwatches, and also began development on Project Ara, a platform for modular smartphones with interchangeable components.