Motorola will use TCL selling team.

Motorola will use TCL selling team.

Both companies could hope positive outputs of the deal. Motorola has lost its pole position in the Chinese market to Nokia and is wanting to regain some market share points in the GSM market. The deal can also help it cutting selling costs, avoiding deploying/ maintaining thousands of outlets across the country. On its side, TCL is in trouble. Previous deal with Alcatel did not succeed, and TCL remains with increasing loss (triple in 9 months) and domestic sales down 66% (in units). So the deal could help it to gain access to a new product portfolio, very low-cost products (Motorola is the champion of $30-mobile phones for emerging markets) and a famous brand.

Motorola did not deny the possibility of further cooperation in the future, as TCL is expected to restructure its mobile phone business, and had contacts with investors. The closest one seems to be Motorola.