Lenovo mobile group to merge with Motorola Mobility

Lenovo Mobile will no longer exist and entirely merge with Motorola Mobility. In the new organisational structure, Lenovo Mobile employees will be led by the Motorola management team.

Even after Lenovo acquired Motorola Mobility in October 2014, both the companies operated separately with promoting their own brands individually. But now Lenovo is going ahead with the process of incorporating its Mobile Business Group (MBG) into Motorola Mobility.

In light of the earlier official statements made by the company for its quarterly results, Lenovo Mobile will be restructured affecting the product line as well as its brand. As a result, a simple and streamlined product portfolio with fewer models will come up in the near future.

“The new organizational structure will be immediately released,” said Lenovo Mobile Group President, Chen Xudong, as reported by XiaomiToday.

After the merger, Lenovo’s ZUK will be the company’s “flagship internet brand” while Motorola will have a prominent presence in international markets with high-end brands. Along with that, Lenovo Mobile's workshop will also be integrated into Motorola Mobility. In a statement issued to NDTV Gadgets, Lenovo confirmed that the company is taking broad, decisive actions to realign businesses, cut costs and return to sustainable, profitable growth.

"MBG will continue to drive Lenovo's overall mobile business, but will now rely on Motorola to design, develop and manufacture smartphone products," Lenovo added in the statement to NDTV Gadgets.

Yuanqing Yang, Chairman and CEO of Lenovo assured that the company will further integrate elements of the acquisitions with the legacy businesses in Mobile and Enterprise, while building the right business model and cost structure. Lenovo acquired Motorola from Google in 2014 for $2.91 billion (AU $4.08 billion) .

The company announced its first fiscal quarter results with net income declining 51 percent year-over-year to US$105 million (AU $147 million). Lenovo also revealed that it faced severe challenges in its main markets. Former president of Motorola, Rick Osterloh, will be the leader of the combined global smartphone business unit.

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