Lenovo Wants Its Motorola Phones Back In Vogue

Lenovo Wants Its Motorola Phones Back In Vogue
Paul Allison, CFA

about 1 month ago2 mins

Mentioned in story

What’s going on here?

Chinese tech giant Lenovo designed plans to make Motorola the third-biggest smartphone brand, presumably missing the ability to snap a phone shut after an argument.

What does this mean?

Motorola was the “it” brand back in the 90s, holding 17% of the mobile phone market in the palm of its hand, fittingly. For comparison, Apple and Samsung – today’s two biggest smartphone brands – have around 20% each in their grasp. But ever since diamanté flip phones started being swapped for minimalist smartphones, Motorola’s share has slipped to just 4%. Brand-owner Lenovo, though, believes a focused push could more than double that, according to its plans to propel Motorola to the third-place spot within three years. Stranger things have happened: low-rise jeans are back in style.

Smartphone market share
Source: IDC

Why should I care?

For markets: An Apple a day...

Investors clearly don’t see Apple falling out of favor anytime soon. By paying a pretty penny for the company’s shares, they’ve sent the tech goliath’s valuation to a height barely seen for the last 20 years. Generally, investors obsess over a stock for one of two reasons. Either the company’s tipped for a fast and furious growth, like market stand-out Nvidia, or it’s expected to plod on at a slower but reliable rate. So with Wall Street predicting that Apple will increase profit by a steady and comfortable 8% over the next couple of years, and with a reputation folk feel comfortable betting a mortgage on, it’s no wonder investors are splashing out to stock up.

Apple stock
Source: Google Finance

Zooming out: The market’s due an upgrade.

Investors ought to be careful, mind you. Motorola’s DynaTACs – a nine-inch-tall cell phone that wrangled half an hour of talk time after a ten-hour charge – had Wall Street traders entranced in the 80s, before Nokia came along with more pocket-sized brick phones, à la Jurassic Park. So Apple and Samsung devices might seem irreplaceable at the moment, but history does have a habit of repeating itself.

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