Lenovo Confirms Will Never Phase Out its Smartphone Brand

Lenovo Confirms Will Never Phase Out its Smartphone Brand
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In November 2016, a Chinese report claimed that Lenovo would only sell Motorola phones. That is, it will end the Lenovo brand. This news came to light when the company did not release such huge financial results. Len Yuanyak, chairman and chief executive of Lenovo Group, told Reuters that the Lenovo Confirms brand will never be phased out for the smartphone.

Lenovo

Yang also said that even though the company is restructuring its business in China, its smartphone business will not be affected in the country. Even after the release of a smartphone with Lenovo Moto branding, the company has suffered a lot, even if the company still wants to maintain a double brand strategy. In some markets, Lenovo is selling both its own brand and Moto. However, in other markets, it only sells either Lenovo or Moto smartphones.

Lenovo’s mobile business produces around 18 percent of its revenue as the PC business makes more revenue. Mobile business has suffered a huge loss of $ 566 million. The previous year’s loss was $ 469 million; its data center division lost $ 343 million. Wong Yi Ming, Lenovo CFO said that smartphones and data center businesses were different from their PC business. Therefore, the company will need more time to understand them. He said that in the near future, its smartphone and server business will be better.

Lenovo Will Never Phase Out its Smartphone Brand

The lead of the mobile division was Liu Jun, who will be joining Lenovo China as president. He will also lead the consumer segment for the company. They have also claimed that Lenovo will release more products that meet consumers in China.

According to Young, although the company is restructuring its business in China, its mobile business will not be affected in the country. After releasing a smartphone with Lenovo and Moto branding, the company has already suffered extensive losses. However, the company still wants to maintain a double brand strategy. In some markets, Lenovo smartphone is selling with both branding. However, in other markets, it is selling only Lenovo or Moto phones.

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Lenovo’s mobile business generates approximately 18 percent of revenue as it receives more revenue from its PC business. The mobile division has suffered a huge loss of $ 566 million. In the previous year, it met with a loss of $ 469 million.

Its data center group also reported a loss of $ 343 million. Wong Yi Ming, CFO said that the Smartphone and data center business is different from the PC business. Therefore, the company will need more time to understand business. CFO said that its Smartphone and server business will be better in the near future.

A leaked tablet from the recently held Lenovo conference clearly shows that the Chinese company is going to launch Moto branded phones this year. It has already launched Moto C and Moto C Plus and soon it will launch other smartphones such as Moto Z2, Moto Z2 Force, Moto Z2 Play, Moto E4, Moto E4 Plus and Moto X4. Nearly half a year and the company has not yet launched a Lenovo branded phone.

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