Lenovo is Re-emphasizing the Motorola Brand, Doubling Down on Mods – CNET (Mar 1, 2017)
I’ve changed the headline here to reflect two key points from the article: that Lenovo has done an about face and decided to re-enshrine the Motorola brand as the main brand for its phones globally, rather than de-emphasize it as previously planned; and that the company is doubling down on its Moto Mods concept, rather than abandoning it as LG has. The branding decision is a no-brainer: it always seemed odd to take an iconic brand like Motorola and retire it in favor of the Lenovo brand, which has far less (and less positive) recognition among smartphone buyers globally. The Mods decision is an interesting one – this article has one of the first numbers I’ve seen on how well they’re selling – it sounds like roughly half of Moto Z phones are bought with at least one Mod, which is actually a pretty decent attach rate (no pun intended). But Lenovo’s latest financial results say the Z is on track for just 3 million shipments in its first year, relative to Lenovo’s 51 million total smartphone shipments in 2016, so this flagship is still a tiny fraction of its total sales. And that’s a problem, because the rest of Lenovo’s sales haven’t been going nearly as well, and those that have been are very low-end focused. That’s not a great recipe for eventual profitability in smartphones, something that’s remained elusive for Lenovo since it bought Motorola.
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