Lenovo’s acquisition of Motorola’s not lived up to expectations

Lenovo evaluates on the costly purchase of Motorola and are not pale to admit that the integration of the producer has not gone as expected.

It drew headlines when Lenovo in 2014 bought Motorola from Google as well as 2,000 related patents for 17 billion. Crowns. The goal was clear: to use Motorola’s well-known brand to increase market share in Europe and the United States with the hope of becoming the world’s third largest producer.

Integration of Motorola with Lenovo is not, however, gone as desired, according to the Chinese manufacturer now in its kvartalregnskab. “The integration effort did not live up to expectations”, says among other things.

Instead of attempting to fuse two vastly different manufacturers change Lenovo now strategy. In the home country China will completely focus on the affordable under fire ZUK, while Lenovo will make a comeback in the United States with a “competitive portfolio of products” on the basis of the acquisition by Motorola.

Lenovo will eventually also bet on countries like India, where there is a strong growth both in the whole national economy, but also in sales of smartphones opposite at these latitudes, where sales have stalled.

Lenovo is-quite the opposite plan-dropped out of the top 5 list of largest smartphone manufacturers after the acquisition by Motorola, so there is something in need of new approaches. For the Lenovo will now consist of two sibling Directors responsible for each its effort in, respectively, China and the rest of the world.

The result of Lenovo’s restructuring and new strategy be seen even now, where there have been drastic changes in Motorola’s Moto G and Moto X-series. The price-friendly Moto G has got a new successor, Moto G4, while last year’s top model, Moto X Style, followed up with a new Moto Z, which is launched on 9 June.