Lenovo credited double-digit revenue and profit growth in its mobile division to an expanded smartphone portfolio, with sales of 5G models more than tripling year-on-year in its fiscal Q4 2022 (ending 31 March).
In an earnings statement, Lenovo highlighted its 5G for all strategy and strengthened collaboration with mobile operators as key drivers for smartphone growth, noting its wider product portfolio delivered a double-digit market share in North America for the first time since the acquisition of Motorola Mobility.
Looking ahead, Lenovo plans to focus on widening its product line-up and differentiation to take advantage of increased 5G adoption and a changing competitive landscape.
Smartphone revenue for the full fiscal year jumped 39 per cent to $7.9 billion, with operating profit more than doubling to $362 million.
Lenovo’s Intelligent Device Group (IDG), which includes smartphones, tablets and PCs, recorded an 8 per cent year-on-year rise in fiscal Q4 revenue to $14.7 billion, despite supply and production disruptions caused by Covid-19 (coronavirus) lockdowns in China. Operating profit increased 14 per cent to $1.1 billion.
Companywide revenue, covering IDG, IT infrastructure and services, increased 6.8 per cent to $16.7 billion and net profit rose 58 per cent to $412 million.