Lenovo says it will rely on Motorola to design, develop and manufacture its smartphones moving forward

Lenovo says it will rely on Motorola to design, develop and manufacture its smartphones moving forward
In announcing its quarterly earnings today, Lenovo said that total revenue rose 3% year-over-year to $10.7 billion for the second quarter. But net income declined by 51% to $105 million. Those figures comprise all of the company's businesses. When it comes to smartphones and tablets, Lenovo said that slowing growth and increased competition has been hurting its results in the mobile sector.

Still, the Mobile Business Group rode on Motorola's coat tails, and the latter's $1.2 billion in revenue contributed more than half of the mobile group's $2.1 billion in revenue for the three month period. That was a 33% gain year-over-year. The company reported a pre-tax loss of $292 million in the mobile sector. For the period, Lenovo shipped 16.2 million smartphones, up 2.3% from the number shipped during last year's second quarter. 5.9 million of the handsets delivered had the Motorola brand on it, a decline of 31% year-over year.

Lenovo says that it will now rely on Motorola to design, develop and manufacture Lenovo's smartphone products. In addition, the company sees Motorola and the Mobile Business Group returning to profitability in the next two to three quarters. In tablets, Lenovo saw shipments rise 3.8% to 2.5 million slates. With 5.8% of the tablet market, Lenovo is number three globally and managed to steal away some market share from the two manufacturers ahead of it.


source: Lenovo

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20 Comments

1. Arthurhkt

Posts: 717; Member since: Apr 19, 2012

Sound good to me, because I really felt that both the hardware and UI design of Lenovo is really, really bad.

4. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Lenovo software is pretty bad, I experience minor bugs here and there for their K920. Nothing major but still XiaoMi and Samsung is ahead in term of software. For example contact managers can't display name just numbers due to IDD same goes for their defaults sms app. Hardware wise is sweet. Battery life, QHD 6 inch screen and a 78.29% screen to body ratio is just what a flagship phone should be.

9. Arthurhkt

Posts: 717; Member since: Apr 19, 2012

Yeah, in term of UI and hardware design is really bad, but I do agree the overall performance and the internal hardware is pretty decent.

18. Niva.

Posts: 440; Member since: Jan 05, 2015

I actually like Lenovo's design, but I'll never buy a phone with that software on it. If you're buying anything other than a Nexus device you're comiting a sin.

11. QWERTYphone

Posts: 654; Member since: Sep 22, 2014

VERY WISE DECISION. GOOD MOVE.

2. HugoBarraCyanogenmod

Posts: 1409; Member since: Jul 06, 2014

Moto have a better life under Chinese parent, because American parent like Google and Microsoft failed miserably

12. Johnnokia

Posts: 1158; Member since: May 27, 2012

"The company reported a pre-tax loss of $292 million in the mobile sector" That is actually terrible, and it is getting true that no one is making money from Android. Lol ... I am kidding Moto X Style is my next phone

3. Af1rPA

Posts: 712; Member since: Jun 12, 2014

Why not. The current crop of Lenovo handsets look boring and a bit too much like Sony. Some Motorola curves will be a welcomed addition.

5. legiloca

Posts: 1674; Member since: Nov 11, 2014

In Layman's Terms.. Motorola is Lenovo's bitch now lol!

7. jroc74

Posts: 6023; Member since: Dec 30, 2010

Funny I dont see it that way. I see it as they felel Motorola does a good job developing and manufacturing smartphones....so they want them to do that for lenovo brand phones. Motorola is still owned by Lenovo...

10. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

The whole US nation is in debt to China.https://en.wikipedia.org/wiki/National_debt_of_the_United_States All the major successfully US companies are not doing their due in term of Taxes.http://www.abc.net.au/news/2015-04-08/google-apple-microsoft-deny-tax-avoidance-senate-inquiry/6379024 So who's is who bitch now! Yours truly included.

15. TerryTerius unregistered

China only owns 8-9% of the entire US debt, roughly the same amount as Japan and England. The overwhelming majority of US debt is to American citizens themselves. I get so sick and tired of seeing this misunderstood narrative get repeated it's not even funny.

6. jroc74

Posts: 6023; Member since: Dec 30, 2010

"Still, the Mobile Business Group rode on Motorola's coat tails, and the latter's $1.2 billion in revenue contributed more than half of the mobile group's $2.1 billion in revenue for the three month period. That was a 33% gain year-over-year." Those that say Google selling Motorola is comparable to what MS did with Nokia... Not in the same ballpark. Google actually lost out by selling Motorola.

8. jroc74

Posts: 6023; Member since: Dec 30, 2010

"In addition, the company sees Motorola and the Mobile Business Group returning to profitability in the next two to three quarters." Nice to see Moto getting better. That means more phones from my fav Android OEM.

13. Chuck007

Posts: 1409; Member since: Mar 02, 2014

HBCM and Joey (which I suspect to be the same guy), all this China nationalistic messages you are posting here aren't convincing anyone to view things from your perspective. It's actually making people hate China... unless that is your intention. Otherwise, your employer should seriously consider hiring someone else to spread Chinese propaganda on the web. Not the least convincing..

14. Chuck007

Posts: 1409; Member since: Mar 02, 2014

On the topic of Lenovo using Motorola to design and manufacture their phones, it's an extremely good move. Should improve quality of their mobile line across the board. Only if they let Motorola design their Thinkpad line also. That'll be uber sweet.

16. Taters

Posts: 6474; Member since: Jan 28, 2013

Meh, I like the look of Lenovo phones more than Moto phones to be honest. Everything else besides aesthetics Moto is better though.

17. lylee73

Posts: 84; Member since: Mar 18, 2015

Lenovo will rely on Motorola?! Okay, I have already gave up on Lenovo already. It's not that I hate China or me, hating Chinese. It's that I couldn't stand of not standing out anyway. Another thing that I notice was the hardware doesn't meet my need for the price point. I'm set for Asus Zenfone C.

19. wesley.

Posts: 206; Member since: Aug 06, 2013

Lenovo make great hardware. Just use Intel chips on their phones too much and don't sell in the west.

20. adityaparama13

Posts: 1; Member since: Feb 24, 2015

I can't say much about their smartphone and tablets design, but I LOVE their laptop design. It's just simple yet beautiful. Maybe if they designed their mobile devices this way... Idk just my opinion though

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