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Lenovo To Start Manufacturing Handsets For Other Companies

September 11, 2015 - Written By Kristijan Lucic

Lenovo is one of China’s biggest tech companies. This company dabbles in pretty much everything, and as you probably already know, they own Motorola Mobility as well. Lenovo has been making a lot of cash from selling smartphones in the past, but their profits took a hit in the last couple of quarters. They reported a loss of almost $300 in Q2 this year, and their shipments seem to decline even further. This is not all that surprising cosnidering how fierce Chinese smartphone market is, there’s a lot of competition over there, mainly from Xiaomi, Huawei and ZTE, but there are tons of other OEMs over there who are grabbing marketshare wherever they can. That being said, China is not Lenovo’s only market, not even close to that, but it is the company’s main market, their homeland.

With that said, it seems like Lenovo is planning to start manufacturing devices for other companies soon. In other words, Lenovo will let rival manufacturers use their factories in order to manufacture devices. This is actually a part of the company’s restructuring plan which was drafted once they reported a significant loss in the second quarter this year. Motorola is still doing well for Lenovo, but the Lenovo-branded device sales are declining at an alarming rate for the company. It remains to be seen what exactly is Lenovo planning, the source did lay out the general plan, but we’ll see if Lenovo actually goes through with this. This might be a way for the company to balance things around, and earn some money from their rivals.

By doing this, Lenovo will more or less compete with Foxconn, Compal Electronics and FIH Mobile who are in the same business. We still don’t know when exactly is Lenovo supposed to start manufacturing devices for other OEMs, but we’ll make sure to report back if any additional information surface in the coming weeks, and judging by what we’ve seen thus far, it surely will. As a side note, Lenovo is soon expected to release the Vibe X3 handset which was certified by TENAA recently, so stay tuned for that as well.