Lenovo Initiates Mobile Business Group Merging into Motorola Mobility

Published By : 27 Aug 2015 | Published By : QYRESEARCH

Lenovo has continued along the lines of their earlier statements and has begun integrating its mobile business group into Motorola Mobility.

A Lenovo spokesperson said on Wednesday that effective immediately, the former president of Motorola, Rick Osterloh, will be elected to lead the merged business unit for smartphones and placed under Motorola’s legal assets. The spokesperson also said that the MBG will keep on expanding the overall business for Lenovo mobile, but will now depend on Motorola for its designs, developments and product manufacture of smartphones.

The Lenovo is currently under reformation which could impact their line of products along with its brand, as said by Chen Xudong, the Lenovo Mobile Group president recently.

Included in the restructure is the joining of Lenovo Mobile employees into Motorola. As the latter has a greater headcount, it will lead the team taken from Lenovo.

Other plans chalked out in the merger include the incorporation of Lenovo Mobile workshop into Motorola Mobility. After the merger, ZUK by Lenovo will be their flagship Internet brand.

Motorola will continue selling high-end devices in their international markets due to its greater presence than Lenovo.

The merger and its announcement is synchronized with Lenovo’s earlier report after releasing the last quarter’s results in early August. Back then, the company made the announcement that they were entering a reformation phase of its MBG. They said it will remain operational and continue to expand the company’s mobile business. It will, however, rely on Motorola to design, manufacture, and develop the newer smartphone products.

Lenovo had acquired Motorola from Google in 2014. The company was bought out for US$2.91 billion. A clause in the agreement stated that Google will remain the owner of a large chunk of the Motorola Mobility patent portfolio.
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