Lenovo To Sell Phones At Cost In Order To Stay Competitive

Lenovo is a well-known tech company, and they're especially popular in the PC market, their laptops, in particular, are still selling really well. This China-based company, however, also manufactures smartphones, and has several sub-brands under their wing, including Motorola and ZUK. Motorola has recently introduced the Moto G4 and G4 Plus devices, while ZUK released the ZUK Z2 Pro flagship with 6GB of RAM and the ZUK Z2 which comes with 4GB of RAM. This is some really serious firepower for the company, and it seems like Lenovo plans to take an interesting approach to the sales of their products, read on.

The company said recently that Motorola didn't exactly meet their expectations since they purchased the company, and that might be one of the reasons Lenovo is planning to alter their approach to sales. According to Chinese media, Lenovo Mobile Business Group President, Cheng Xudong, said that Lenovo plans to sell their products at cost in order to compete in the Chinese market. This essentially means that Lenovo won't exactly be making any cash from their smartphones (or will at least earn significantly less per device) in order to stay competitive in China, the largest smartphone market in the world. Chinese smartphone market slowed down quite a bit recently, and it is seriously oversaturated at the moment, so this decision is not all that surprising.

Mr. Xudong also believes that the Motorola and ZUK-branded smartphones can help Lenovo increase their presence in the Chinese market, and Lenovo might even tackle the global market if sales pick up in China. Mr. Xudong's statement basically explains why are the ZUK Z2 and ZUK Z2 Pro so affordable despite the fact they sport such high-end specifications, they managed to outshine Xiaomi, Meizu and Huawei in terms of pricing. The ZUK Z2 is priced at 1,799 Yuan ($273) despite the fact it ships with the Snapdragon 820 processor, 4GB of RAM and 64GB of internal storage. The ZUK Z2 Pro, on the other hand, comes with the Snapdragon 820 SoC, 6GB of RAM and 64GB / 128GB of internal storage, and the higher-end model is priced at 2,699 Yuan ($416), while the lower-end variant will be even more affordable. It will be interesting to see if this helps Lenovo's sales in China.

Source: Lenovo To Sell Phones At Cost In Order To Stay Competitive