Sunday, January 10, 2016

Lenovo sends retired Motorola – Il Sole 24 Ore

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This article was published on January 9, 2016 at 8:14.

Another pioneer of cellular retires. On the other hand in a world where innovation also goes by the brand, the brand Motorola was no longer cool. The name evokes the Startac, the first clamshell phones, and Razr, their evolution 2000s image no longer in step with the times, and so, after Nokia, Motorola also for no future.

Lenovo, the Chinese company that bought the company from Google in 2014, has in fact decided to get rid of the words from his Motorola devices starting this year and gradually. The news was reported from Las Vegas, where he is being Ces. “The Motorola brand will be phased out and we will focus on Motorcycles” said Rick Osterloh, chief operating officer of Lenovo, during an intervention at CES, the largest electronics fair which is held these days in the States. The manager explained that the company is unifying its business related to telephony, grouping them under a single brand Lenovo.

Moreover, even in numbers survival Motorola did not seem justified: the company acquired by Google in 2012 for about $ 12 billion, was sold to the Chinese group two years later for only about $ 2.9 billion .

Lenovo, therefore, will now produce two different lines of devices: Motorcycles that will be used for high-end products and Vibe that will be used on the devices to medium-low. The industrial strategy has been developed to try to offset the decline in sales of PCs by the group. In the second quarter of 2015-2016 (ending in October), in fact, despite an increase of 16% year-over-year revenue share to 12.2 billion, Lenovo posted its first loss in a quarter in the past six years. Before taxes, the group saw a loss of 324 million smartphone unsold and restructuring costs for 599 million. Now try the turnaround of the phone companies, but the competition in the market remains high. The good news in this situation is that 70% of the sales were made by the group in the six months out from the Chinese border. A percentage that only the first year was 19%. Precisely for this reason there is a margin to meet the challenge.

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