News

Lenovo to Bring Motorola Phones Back To China

Group is bringing Motorola smartphones back to China in February, as the group seeks new source of growth in its smartphone business amid fierce competition with local companies such as Xiaomi and Huawei.

Motorola smartphones

Lenovo will offer the Moto X around the Chinese New Year- the Spring Festival- in February. The Moto X Pro with a 6-inch display and the curved Moto G will be available afterwards, according to a post on Motorola’s website. Lenovo in October completed its $2.91 billion acquisition of Motorola Mobility from Google. Motorola has been absent in China for about two years.

Shares of Lenovo rose 2.9% to HK$10.38 as of 11:51 local time.

Lenovo, the world’s largest personal-computer maker, is betting on smartphone sales to help combat a decline in PC demand. But the group’s progress has not been smooth, Lenovo acknowledged in its 2014/15 interim report that the home China smartphone market is no longer the “ hyper growth market and its mix to global market is getting smaller.”

Local rivals pose daunting challenges. Chinese smartphone vendor Xiaomi, which recently completed a funding round that valued the private firm at $45 billion, beat Lenovo in China and worldwide smartphone market share in the third quarter, according to research firm IDC.

Xiaomi said its revenue doubled to $74.3 billion yuan ($11.97 billion) in 2014. Smartphone shipment increased 227% to 61 million units in the same period.

China’s Huawei is also growing. Smartphone shipments rose to 75 million units in 2014. Revenue rose almost a third to $11.8 billion last year, Reuters reported.

Gene Cao, an analyst at Forrester Research, said the best way for Motorola to grab a piece of the China market is targeting relatively high-end consumers.

“Motorola has said it wants to cover all segments of the market,” he told Forbes.” But it is better for them to focus on a few product offerings to differentiate the brand from Xiaomi and Huawei.”

Source from Canton Fair.

Leave a Reply

Your email address will not be published. Required fields are marked *

Powered by: Wordpress