The company moaned that its integration efforts after buying Lenovo had not met its expectations.
Both crucial mobile markets, China and the United States, disappointed in the wake of Lenovo’s takeover, with Chinese shipments declining by a huge 85 percent and product transition in North America deemed simply “not successful.”
Lenovo says it has drawn many lessons from the experience since the close of the Motorola acquisition and it’s applying them quickly. One aspect of its refreshed strategy is to have two co-presidents, with two distinct strategies for China and the rest of the world. In China, Lenovo will refocus around its affordable Zuk brand “to rebuild its end-to-end competitiveness,” while elsewhere the company plans to keep growing in emerging markets “and get the US business back on track with a competitive product portfolio.”
It has already been doing this for its Moto G launch which is focused on India and Brazil, two countries where the Moto brand is already doing well.
When Lenovo bought Motorola from Google, it had expected to become a strong number three and a credible challenger to the top two in smartphones.
CEO Yang Yuanqing said that the combined Lenovo-Motorola group has fallen out of the top five global smartphone vendors, supplanted by fellow Chinese manufacturers Huawei, Oppo, and Vivo. Huawei rose to become what Lenovo intended.
In any event Lenovo is planning a come-back with its Moto Z flagship which looks like it will be bold and ambitious. The Moto Z is expected to be accompanied by a series of MotoMod accessory cases, which add things like a projector, a zoom camera, and better speakers to the basic device. This will be revealed on June 9.