Lenovo originally had some big plans for Motorola when they acquired the company from Google. There were talks about Motorola being kept separate and only utilizing Lenovo’s own worldwide connections to introduce the Moto brand to a global audience. However, things took a sharp turn when Lenovo posted financial losses and it turned out that integrating Motorola wasn’t as easy as they had first thought. We even saw reports about the company dropping the Motorola brand entirely.
Lenovo ended up changing their mind about dropping the Motorola branding as their latest decision has been to keep both Lenovo and Motorola going as two individual brands. The company has been going through a huge restructuring plan over the last couple of years and just this week it was announced that Lenovo had finally been able to return to profit this year. Lenovo recently announced they were able to bring in $535 million in profit in the year to March and that was even when revenue had dropped by 4%.
However, this wasn’t because of the company’s mobile division. In fact, Motorola announced their mobile division wrote down a loss of $566 million. However, despite the company still talking about restructuring plans, it has been revealed that this will not change their mobile division. While other parts of Lenovo could see the belt tightened, the company says both the Lenovo brand as well as the Motorola brand will be left intact as of right now.
This doesn’t mean they won’t change their mind about dropping the Motorola brand in the future. We’ve already seen the company talk about replacing Motorola’s software with ZUI from their ZUK brand in some regions. We did hear from Lenovo Group chairman and chief executive Yang Yuanqing though and he made it very clear that they “will never phase out Lenovo” when referring to the company’s mobile division.
Source: Reuters
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