Lenovo to Penetrate High End Phone Market by Introducing Latest Technology
Lenovo Group has now entered the high end smartphone market as they introduced its latest three dimensional technology while letting go on a piece of history. Beijing based Lenovo showed off a smartphone that overlays digital 3D objects in real time environment using cameras, sensors and built in software during the Consumer Electronics Show in Las Vegas. Lenovo said that the prototype is using Google’s Project Tango technology in crating on screen 3D experiences with the first handset carrying the technology that is expected to be launched in the summer.
The head of Lenovo’s smartphones business Chen Xudong pledged to do more pioneering innovations for future products saying that the technological edge and eye catching design are some of the ingredients to attract buyers who are willing to spend more than $500 dollars on a smartphone. Lenovo executives said that the company would also abandon the iconic Motorola name in its premium handset division. Lenovo bought Motorola Mobility a year ago, which is the first company to produce cellular phones. The android smartphone maker will still use the familiar M logo but will be simply called Moto and will be playing a major role in grabbing high end market shares.
The rebranding is not to end a time honored brand, but rather make it stronger. Moto devices mainly target segments above 3,000 yuan and devices carrying the Lenovo logo is targeted for the lower end market. Several other strategies will include trimming product types so the company can focus in the development of their flagship products. Furthermore Lenovo is adding more innovations in its products in efforts to boost its presence in the top tier market. Lenovo executives saw that the lack of innovation is hurting the growth of the company and they are now looking for ways to solve the problem.
Several Chinese vendors are also moving to the above 3,000 yuan market as global giants Samsung Electronics and Apple are showing signs of slowing down. Xiaomi Corp. is planning to introduce a premium device with the Qualcomm Inc latest chipset in February, the new device will be called Mi 5 and is the most expensive smartphone the company will be launching. 80 percent of the country’s smartphone market is covered by Chinese firms, but the iPhone and Galaxy smartphones still maintain control over the top tier market as profit margins in inexpensive markets are thinning Chinese companies is set to enter the more profitable high end segment.