Lenovo to announce a new brand for China and other markets
As Lenovo now officially owns the Motorola name which is still recognizable in the States, the company’s logical move is to try to further popularize the brand by expanding its portfolio of smartphones and starting more aggressive marketing campaigns. Maybe because of the brand value, Google has chosen Motorola for its latest Nexus phone (the Nexus 6).
The same doesn’t apply to many of the key markets. In China, for example, Motorola has failed to attract a large audience, while many local Chinese vendors like Xiaomi are ruling the market.
Though Lenovo has some really successful models like Vibe, the company is preparing the launch of a separate company (brand) in the first half of the year. That would allow Lenovo to diversify its portfolio by launching Moto smartphones on markets where the name is popular, while in China there will be another brand which will be promoted.
It would be interesting to see how Lenovo will manage to establish its brand on a market where the leading company Xiaomi sells not only devices by a whole ecosystem and related services. Lenovo is expected to announce the new brand on April 1st 2015. Until then, the Motorola acquisition will be formally completed so Lenovo can start a new era with more aggressive efforts around the globe. In a decade of falling PC sales, tablets/ hybrids and smartphones are becoming the main targets for the companies.
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Source: Wall Street Journal