Lenovo has begun merging its Mobile Business Group (MBG) into Motorola Mobility and the latter will soon start designing and building phones for its parent company, reports NDTV Gadgets.
The move is part of an effort to streamline its product portfolio, following a 51 percent decline in year-over-year net income to $105 in the first quarter of this year. Along with news of the dismal quarter came a decision to slash 3,200 non-manufacturing jobs.
The company said in a statement, “MBG will continue to drive Lenovo’s overall mobile business, but will now rely on Motorola to design, develop and manufacture smartphone products.”
Lenovo Mobile employees will join Motorola staff, and the parent company’s recently launched ZUK will become its ‘flagship internet brand’. It just announced the Cyanogen OS-powered Z1, which will go on sale across Europe and US in September for $300.
Meanwhile, Motorola will continue to sell its high-end devices in other markets where it has a larger presence than Lenovo.
However, it’s not clear if Lenovo will entirely kill off its namesake phone brand across the globe. It began manufacturing smartphones in India earlier this month along with Motorola, and its devices are still available online.
Update: A Lenovo spokesperson said, “Both Motorola and Lenovo brands will remain in the market currently. Long term branding decisions are still in discussion.“
➤ Lenovo Begins Merging Mobile Business Group Into Motorola Mobility [NDTV Gadgets]
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