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Lenovo brand name staying despite company reshuffle
Lenovo is restructuring its business in China, creating new management positions as it seeks to increase profits. The news arrives via The Wall Street Journal, which said that Lenovo’s business in China would be split into two groups: “a data center group and a consumer division” which would target the PC market and smart devices separately.
The company was estimated to be the world’s third largest smartphone manufacturer in terms of shipments towards the end of 2014 after it finalized the Motorola acquisition from Google. As of Q1, 2017, it’s not in the top five.
What’s more, Lenovo’s “Hong Kong-listed stock has fallen nearly 60% since the Motorola acquisition,” according to The Wall Street Journal.
Meanwhile, Lenovo recently lost its place as the number one PC vendor to HP, while Chinese manufacturers like vivo, Xiaomi, OPPO and HUAWEI are eating away at its smartphone profits.
“We are a company to learn quickly, no matter from success or failure,” Yang Yuanqing, Lenovo Group Chairman and CEO said regarding the changes. “You have to make adjustments to make the organization better than before, and to make it stronger than before.”
Yang also said that the moves won’t affect its mobile business in China and that it will maintain its “dual-brand” strategy i.e. releasing phones as Lenovo and Motorola. “We will never phase out Lenovo,” Yang told Reuters.