Lenovo SmartPhone Strategy volume increase + mix improvement + cost reduction
After Moto's recent come-back to the China market, Lenovo plans to continue growing the Moto business by rolling out to more countries such as India. In terms of market position, Lenovo/Moto intends to avoid competing with Apple and Samsung in the high-end market. On the other hand, it will target the US$200-300 price band where LGE, HTC, and local leaders (e.g., Karbonn in India and Advan in Indonesia) are the major competitors. Lenovo believes that it can replicate the success in PC by growing the smartphone volume first then reach breakeven in 3-5 quarters. Longer term, Lenovo group targets mid-to-high-teens market share for smartphone with 5- 6% OP margin.
