Lenovo, which ranks first in PC sales and third in smartphone sales worldwide, has replaced the head of its mobile group.
The Chinese company, which also has a headquarters in Morrisville, announced Monday that Liu Jun has departed as executive vice president of the mobile business group and chairman of Motorola Mobility, the smartphone business that Lenovo acquired last fall.
Jun, who joined Lenovo in 1993, was named head of the mobile business group – which includes smartphones, tablets and smart TVs – when it was unveiled early in 2014 as part of a broader revamping of the company’s organizational structure. Before that he was senior vice president of Lenovo’s business group, which encompassed mobile and consumer products.
Lenovo said in its announcement that Jun “will become a special consultant to the CEO on mobile business and strategy for a certain period of time. Further details are not being disclosed at this time.”
Jun has been succeeded by Chen Xudong as both head of the mobile business group and chairman of Motoroloa Mobility. Xudong, 47, who also joined Lenovo 22 years ago, previously was CEO of ShenQi, the Chinese business focused on Internet-based smart devices and services that Lenovo recently spun off. Before that he was president of Lenovo’s China business for five years.
Mobile products accounted for one-quarter of Lenovo’s first-quarter revenue and are a key component of its strategy to diversify beyond the PC.
CEO Yang Yuanqing told analysts during a conference call last month that integration of the Motorola business was “on track” and that he remained confident that the money-losing business would become profitable by next year.
On the other hand, market research firm IDC reported that overall shipments of smartphones in China fell in the first quarter for the first time in six years and that Lenovo’s smartphone shipments in China fell 22.1 percent in the quarter.
Lenovo was complimentary towards Jun. The company noted that that he built the company’s smartphone business and that it was under his leadership that Lenovo became No. 3 in both smartphones and tablets. Lenovo also pointed out that Jun “successfully led us to close the Motorola Mobility deal.”
Under Xudong, Lenovo’s share of the Chinese PC market rose from 26 percent to 36 percent over five years and profitability doubled.
Xudong also will become co-chairman of ShenQi along with George He. Edward Chang, currently vice president at ShenQi, has been named the new CEO of that business.