Lenovo discontinues smartphones. Lenovo releases a "farewell" smartphone

03.11.2016, Thu, 15:57, Moscow time , Text: Valeria Shmyrova

Lenovo will stop releasing smartphones under its own brand, replacing it with the Moto logo. The reason is the success of the modular Moto Z series, which had a positive impact on the results of the last quarter. The brand's "farewell gift" will be the Lenovo P2 smartphone.

Lenovo Drops Phone Brand

Lenovo will no longer release smartphones under its own brand, replacing it with the Moto logo. Thus, the LenovoP2 model, which will be presented by the company in China on November 8, 2016 along with MotoM, will be the last Lenovo smartphone. Information about this appeared on the Gizmochina resource.

The company's decision appears to have been influenced by the success of the Moto G4 and Moto Z, introduced in May and June 2016, respectively. After their market launch, Lenovo's smartphone sales grew 40%, according to the company.

Lenovo reports that it has already sold 1 million Moto Z series devices. The company plans to sell 3 million smartphones of this series within 12 months from the date of release. The reason for the popularity of Moto Z has become Moto Mods, which allow you to attach a camera, speaker, projector or additional battery to your smartphone.

Smartphone sales in the last quarter

In just the second fiscal quarter ended September 30, 2016, Lenovo shipped approximately 14 million phones. Revenue from the mobile division was $ 2 billion, 12% less than last year, but 20% more than in the first quarter.

Lenovo will cease to be a phone brand

The brand's total revenue for the quarter reached $ 11.2 billion - 8% less than last year, but 12% more than the previous quarter. The quarterly growth is a result of the success of the mobile division, in particular sales of the Moto Z series. This compensates for the fact that sales of the brand's computers fell 3.2% year-over-year and tablet sales fell 14.7%.

"Parting Gift" Lenovo P2

According to preliminary data, Lenovo P2 received a 5.5 ″ screen with a resolution of 1920 × 1080 pixels (Full HD). The AMOLED matrix, which the company rarely uses in its devices, should provide high contrast and wide viewing angles.

The device is based on an 8-core Qualcomm Snapdragon 625 processor with a frequency of up to 2 GHz. The amount of RAM is 3 GB, constant - 32 GB with the ability to increase it to 128 GB using a memory card.

The resolution of the main and front cameras is 13 megapixels and 5 megapixels, respectively. The main camera offers autofocus, optical stabilization systems and dual flash. The dimensions of the smartphone are 153 mm × 76 mm × 8.5 mm and weighs 177 grams.

In addition to Wi-Fi and Bluetooth, the device supports NFC near field communication. In addition, the manufacturer promises to support not only GPS, but also GLONASS, as well as the Chinese BDS positioning system.

One of the main advantages of the model is the 5100 mAh battery. The manufacturer claims that the smartphone will be able to work without recharging for up to 3 days. The TurboPower fast charge mode will charge it for 10 hours in 15 minutes.

Lenovo P2 sales will start at the end of autumn, its price in Russia may be about p 25 thousand.

Lenovo and Motorola

Lenovo agreed on Motorola from Google in January 2014. The deal amounted to $ 2.91 billion. As a result, Motorola became a subsidiary of Lenovo. At the time of the acquisition, the company employed about 3.5 thousand employees, 2.8 thousand of them in the United States, where its headquarters remained in Chicago.

In August 2015, it was reported that Lenovo is gradually moving away from the production of phones under its own logo, as the Motorola brand is stronger.

In September 2016, Lenovo announced 1,100 employees, or 2% of its global workforce. Mostly Motorola Mobility employees were laid off, in particular, more than 700 employees in the Chicago office.

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All Lenovo smartphones will be sold under the Lenovo moto brand, the production of smartphones under other names (Vibe, Motorola) is discontinued, Vedomosti reports with reference to Aleksey Klochkov, executive director of Lenovo's mobile division in the Eastern Europe region.

Lenovo bought Motorola Mobility from Google for $ 2.91 billion in 2014. According to Gartner, at the moment the combined company is not included in the top five world leaders in the supply of smartphones (3rd, 4th and 5th places are occupied by other Chinese companies - Huawei, Oppo and BBK).

Now the business of the Lenovo mobile division with Motorola is being integrated, a joint development model is being developed and the difficulties inevitably accompanying the integration processes could affect sales, Klochkov said in the fall of 2016.

Lenovo's mobile division is currently unprofitable - mainly because the Chinese company has not managed to integrate Motorola's mobile business, said Eldar Murtazin, a leading analyst at Mobile Research Group.

Good idea or bad idea?

The combination of the two brands is not a very good idea, Murtazin believes: Motorola fans will not buy these devices, since this is a “fake” Motorola, and Lenovo devices are attractive not because of the brand, but because of the value for money, Murtazin said. At the same time, Lenovo's attempts to promote the Motorola brand in Russia showed that they had already completely forgotten it, he adds.

“Motorola is remembered in Russia. The use of the moto brand can bring additional sales and customer loyalty to Lenovo, ”predicts Alexander Malis, President of Euroset.

The appearance of smartphones under the Lenovo moto brand instead of Motorola devices is unlikely to somehow affect the sales of Lenovo gadgets, an employee of another retailer believes. The buyer of smartphones with the brands Lenovo or Lenovo moto will be interested, rather, in the functionality of the phone and its price, and not in the name, says the source of Vedomosti.