Lenovo splits smartphone portfolio

In a bid to consolidate its mobile handset business, Lenovo has decided to divide its smartphones portfolio under its existing brands Vibe and Moto, representing mass market and premium products, respectively.

The company has also decided to sell Moto (earlier Motorola) smartphones through the offline channel, which used to be available only in the e-commerce sites previously. According to Sudhin Mathur, director, Lenovo Mobile Business Group, the initiatives will help the company secure more market share.

Lenovo, which currently manufactures three smartphone models in India apart from its flagship Moto E, G and X series of handsets, is also planning to manufacture more models in the country in 2016. It has set a target of producing half of its total sales in India during the year.

The company expects to sell 150-200 million smartphones. Currently, Lenovo produces six million phones in its China facility. The move will help it bring down costs in terms excise duty cuts.

Increasing sales in India have led the company to focus on localisation. According to research agency Canalys, Lenovo is the third largest smartphone company in India with 11.2 percent market share.

The recent spurt in its market share growth is attributed to the successive launches of Moto smartphones by the company. During 2015, Moto X, which has a number of variants in India now, has attained a four-fold growth in sales, according to Amit Boni, country head, Motorola. "Moto 360 is the highest selling android wearable device in India now," said Boni. Lenovo's current efforts are part of its strategy to increase focus on highly competitive smartphones market in India. While it is aiming to position Moto as an aspirational brand, Vibe will be offering mass market phones within the affordable segment.