Lenovo is pulling the plug on its gaming smartphone business, says a report by Android Authority. Lenovo's Legion lineup of gaming smartphones with features like SSD RAID storage and pop-out cameras were well-received in the market, but now, the handset maker is making the move as 'part of a wider business transformation and gaming portfolio consolidation'.
The company is likely to shift its focus to the Motorola line of devices.
"Lenovo is discontinuing its Android-based Legion mobile gaming phones as part of a wider business transformation and gaming portfolio consolidation. As a leader in gaming devices and solutions, Lenovo is committed to advancing the gaming category across form factors, as well as focusing on where it can bring the most value to the global gaming community," a company spokesperson was quoted as saying by the report.
It should be noted that future of gaming smartphones doesn't seem great. Handset maker Xiaomi, which owns the Black Shark line, has been struggling and has reportedly laid off hundreds of workers at its facility. However, Asus, with its ROG series of gaming phones is still going strong.
To recall, earlier last month, Lenovo Group posted its revenue of $15.3 billion and a net income of $437 million in the third quarter (Q3) of FY2022-23, signalling strong momentum for its services and solutions business. The company witnessed strong growth in India and logged a total revenue of more than $400 million across all portfolios in the country in Q3.
The global revenue from non-PC businesses reached a high of 41 per cent while its diversified growth engines of Solutions and Services Group (SSG) and Infrastructure Solutions Group (ISG) grew revenue to record highs of $1.8 billion and $2.9 billion, respectively, up 23 per cent and 48 per cent year-on-year (YoY).
The company also hinted at job cuts in future as part of the overall cost reduction, says a report by news agency Reuters.