Chinese tech conglomerate Lenovo Group will “never” discontinue its own smartphone brand in favor of committing all of its resources to Motorola Mobility, i.e. Moto-branded devices, according to the company’s top official – Yang Yuanqing. In a statement given on Thursday, Lenovo Group Chief Executive Officer and Chairman said that the Beijing-based tech giant is adamant to continue pursuing the dual-brand product strategy that its mobile business adopted in late 2014 after the firm purchased Motorola Mobility from Google. Yang was asked to comment on Lenovo’s future mobile plans after the company announced a restructuring of its domestic operations, with Lenovo’s top executive stating that the firm’s original phone brand will not be phased out in favor of Moto at any point in the future.
While the Beijing-based tech giant labeled its restructuring efforts as a pro-consumer move, some industry watchers believe that the company’s recent decision was likely prompted by its financial troubles that started after the global PC market started declining. While facing increasing losses, Lenovo apparently doesn’t see its original handset brand as a disposable asset that can be absorbed by Moto in an effort to cut costs and streamline marketing efforts. The same cannot be said of ZUK, Lenovo’s phone sub-brand that the company is reportedly close to permanently shutting down. Initial rumors of ZUK being discontinued emerged in late April and while an update on the situation has yet to emerge, the Chinese consumer electronics manufacturer will likely provide more details on the matter in the near future.
In the short term, Lenovo is planning to restructure its domestic division into two units, one of which will be focused on its data operations, while the other will manage the company’s consumer-oriented products and services. Even though the firm’s mobile business has yet to return to the black following its acquisition of Motorola, Lenovo apparently isn’t planning to cut costs in this department, with recent reports indicating that seven more Moto-branded smartphones are set to be released by the end of the year as the Chinese tech giant is adamant to continue competing in all price segments.