Hello Moto: China’s Lenovo to phase out Motorola and focus on dual-brand smartphone strategy
Company’s premium handsets will run under ‘Moto by Lenovo’ brand while lower-cost devices will fall under the ‘Vibe’ brand
Technology giant Lenovo Group is likely to ramp up its marketing spending this year, especially in mainland China, as its strategy for premium smartphones moves away from the venerable Motorola brand.
Analysts said the Chinese company will need that investment to stay competitive on the mainland, the world’s largest smartphone market, against aggressive domestic players with more visible handset brands, such as Huawei Technologies and Xiaomi.
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Rick Osterloh, the president and chief operating officer at Motorola Mobility, said on Thursday on the sidelines of the Consumer Electronics Show in Las Vegas that Lenovo was pursuing a dual-brand strategy for smartphones.
“Moto by Lenovo” will now be the branding used on the company’s premium smartphones, while “Vibe” will be the brand for its lower-cost devices.
“We’ll slowly phase out Motorola and focus on Moto,” Osterloh said in a report by technology news site CNET.