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Due to Inventory, Lenovo Set to ship less than 10 Million Smartphones in Q1 2015

April 2, 2015 - Written By Alexander Maxham

Lenovo is one of the biggest smartphone manufacturers around right now. And a big part of that is due to their success in their home country, China. China’s mobile market is absolutely huge. China Mobile, which is one of four major carriers in the country, has more subscribers than all four US carriers combined. That’s pretty insane, right? Lenovo also just bought Motorola, with the deal closing last October. They’ve been working to sell Lenovo-branded and Motorola-branded products together. In fact, at Mobile World Congress, Lenovo’s stand had both company’s devices. Including the new Moto E which they had announced the week before MWC.

According to some research done by Digitimes, it appears Lenovo is on track to ship less than 10 million smartphones this quarter. Which actually ended on Tuesday, March 31st, 2015. This is due to the high inventories left over from the previous quarter – Q4 2014. And also their marketing strategy for both brands. Lenovo shipped about 15 million smartphones in the fourth quarter in 2014. That was due in part by the increasing number of 4G models that were being shipped. They were expecting to maintain their shipping momentum by shipping over 10 million units in the first quarter of the new year, but it appears that’s not happening. Digitimes is estimating that Lenovo will ship about 8-9 million units in the quarter. We should find out more soon when their quarterly results come out.

When Lenovo purchased Motorola, they were hoping that the two brands would help each other out in the global market. Currently, Motorola’s smartphones in the US have remained at a steady pace. And introducing some entry-level models like the Moto E and Moto G in emerging markets like India, Latin America and China have been very successful. Sounds like a great thing right? Well in turn, it’s squeezed out its sister brand, Lenovo. So we could see the two join forces and create just one brand in the near future. Then again, it might be good to have the two brands competing against each other. As Lenovo would win either way, and the customer wins by having some steep competition in the mobile space.