Lenovo is expected to ship less than 10 million smartphones in the first quarter of 2015 due to high inventories left over from the previous quarter as well as its marketing strategy and pricing for Lenovo- and Motorola-brand products, according to Digitimes Research.
Lenovo managed to ship 15 million smartphones in the fourth quarter of 2014 thanks to increasing shipments of 4G models. It was expected to maintain its shipment momentum by shipping over 10 million units in the first quarter of 2015.
However, affected by adjustments in subsidy policy at China-based telecom operators, which has weakened contract sales of smartphones, Lenovo may see its smartphone shipments decline to 8-9 million units in the first quarter, Digitimes Research estimated.
Lenovo believed previously that its two brands would complement to each other in the global market. But sales of Motorola smartphones in the US have been steady recently, and the introduction of some entry-level models in emerging markets including India, Latin America and China has been successful. Thus, sales of Lenovo-brand smartphones have been squeezed by its sister brand, Digitimes Research commented.