14 DAY TRIAL // Today, Lenovo has disclosed its earnings for the first quarter of fiscal year 2015-2016, which showed a 3% increase in revenue to a total of $10.7 / €9.62 billion. However, not all news were positive, as the company posted a disappointing 51% decrease in net income to $105 / €94 million.
Lenovo explains that the decline can be attributed to “challenges in its main market.” The company also recognizes that it is facing difficulties while its mobile business is concerned due to sluggish growth and increasing competition.
Still, the company has a plan and says it will take “broad, decisive actions” in order to reduce costs and become a profitable venture once again. And Lenovo is looking towards Motorola to help it achieve this goal.
You probably remember that Lenovo acquired Motorola a few months back in an attempt to save it from sinking below the sea. And now, the Chinese device maker plans to exploit Motorola’s expertise related to the production of smartphones.
Lenovo's next handsets will be Motorola-made
The idea is that, in the future, Lenovo will be relying more heavily on Motorola when it comes to its smartphone offerings. Here is what the company is planning:
“Restructuring the Mobile Business Group to align smartphone development, production and manufacturing and better leverage the complementary strengths of Lenovo and Motorola. There will be a more-simple, streamlined product portfolio, with fewer more clearly-differentiated models. [...] [Lenovo] will now rely on Motorola to design, develop and manufacturer smartphone products.”
Motorola has recently unveiled three new smartphones, including the sleek Moto X Style and Moto X Play, which boast particularly interesting designs, so we’re pretty curious what the Motorola-designed Lenovo smartphones will actually look like.
In the meantime, we expect Lenovo to roll out a few new models including the Vibe X3 and Vibe P1 handsets, which have leaked in the wild a while ago. The Vibe X3 has the potential of being a flagship, while the Vibe P1 should boast a metal frame and a chunky 5,000 mAh battery.