Lenovo's acquisition, completed three months
ago, ended Google's move into the consumer mobile handset
business. The deal has turned personal computer-maker Lenovo
into a challenger in the higher-end smartphone market, competing
with Samsung Electronics <005930.KS> and Apple Inc <AAPL.O>.
"The (Chinese) market itself is so big here and Motorola has no
share today, so we believe that what we’re really going to
succeed in doing is hopefully take some share from other people
in the market," Rick Osterloh, President of Motorola Mobility
told Reuters.
Motorola will compete in China with Apple and Samsung in the
premium smartphone market and with the world's third biggest
smartphone maker Xiaomi Inc [XTC.UL] in mid- and mid-high level
phones. Lenovo is already the number two smartphone maker in
China.
"Our approach is to have global products tailored and customised
for local markets," Motorola's Osterloh said. Motorola will also
stick to relatively high-end products, he said.
Bryan Ma, a Singapore-based analyst at tech research firm IDC,
said Motorola might test the waters with smartphones designed
for the Americas, but in the next 12-24 months they could
announce more localised products.
"They're trying to introduce themselves to a new group of
friends and trying to establish street cred," Ma said. "What
they have in their pockets is assets from the U.S."
"The good thing is Lenovo has enough of a strong cash position
and local channel presence that they can bankroll Motorola in
the country for while," Ma said.
($1 = 6.2535 Chinese yuan renminbi)
(Editing by Jane Merriman)
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