Moto G: The last powerful well-made budget phone
- Thread starter lost101
- Start date
Google got 17000 patents when they bought moto and now while selling moto to lenovo, they gave only 2000 patents. But lenovo got the license for the remaining patents as part of the sale. So they have all the technology to develop great quality phones like moto g.
But moto g is now sold at very low margin because mighty google can afford it(It'll make it up in software). But lenovo is no google. so they have to sell at higher margin to bring profit. So even if they make phones like moto g, the price will be higher...
But moto g is now sold at very low margin because mighty google can afford it(It'll make it up in software). But lenovo is no google. so they have to sell at higher margin to bring profit. So even if they make phones like moto g, the price will be higher...
Motorola already stated they were making a decent profit margin on the Moto G. I don't think Lenovo would have a problem making a small profit on a low end phone. All low end phones have small margins. Lenovo is in a lot of countries that require low-end phones. It seems like a perfect match to me.
Plus they are used to razor thin margins from their PC business.
I just hope they won't screw everyone by using exclusively MTK crap (like in most of their current phones). Or if they do, at least they should twist MTK's arm (see what I did there?) to release sources...
I agree with you that lenovo being ok with low margin. But they'll be ok until getting enough market share. after that they'll increase margins to bring in money... If you think moto g's margin is "decent", then check out profit margin of samsung and apple
I believe lenovo bought moto mainly to gain market share in US and latin america. In asian market[low-end phone market], they are already stronger than motorola.But they'll try to push motorola in asian market because of it's well established brand name in mobile industry..
try reading this one http://online.wsj.com/news/articles/SB10001424052702303497804579242511374858016
I agree with you that lenovo being ok with low margin. But they'll be ok until getting enough market share. after that they'll increase margins to bring in money... If you think moto g's margin is "decent", then check out profit margin of samsung and apple
Samsung has terrible margins on most of their phones they sell that aren't part of their flagship family. Samsung's last few quarters has shown their profit margins going down even more. No one has found a way to make high profit margins on low end phones. The only way to win that war is with volume. I don't see Lenovo changing much with the Moto G looking forward. When they take control of Motorola it will be at least a year or two before they can really make an sweeping changes.
Why? So you can have a smartphone just to have it collecting dust, losing value, and becoming obsolete instead of using it?
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