Lenovo announced their financial results earlier today, and while their mobile division technically lost $292 million USD, it wasn’t exactly because of recent acquisition, Motorola. In fact, Motorola’s smartphone revenue contributed $1.2 billion of the $2.1 billion total revenue from Lenovo’s Mobile Business Group (MBG), a fact that isn’t lost on Lenovo. To that end, Lenovo will rely on Motorola to “design, develop and manufacture smartphone products”, we’re assuming even Lenovo branded devices, as the company attempts to make the MBG profitable again.
Truth be told, Motorola’s performance was actually pretty average when you consider it as its own entity – its smartphone shipments were down 31% to 5.9 million and it’s struggled to capitalize on its usual markets, like Brazil. Lenovo described these challenges as “intensifying competition, long product development lifecycles with related inventory issues, macroeconomic issues in Brazil (a large market for Motorola), and a fixed cost structure that was out of balance with the losses incurred.” That sounds like a lot of systemic issues, so we hope Lenovo is able to help Motorola resolve these moving forward, because we sure as hell like their latest devices.
What do you think about the news that Lenovo will rely on Motorola to design, develop and manufacture smartphone products? Let us know your thoughts in the comments below.
Source: Lenovo via Phone Arena
