Lenovo’s mobile business faced headwinds in its fiscal Q1 (ending 30 June), as a decline in Latin America sales due to Covid-19 (coronavirus) and currency fluctuations offset gains in other regions.
Mobile Business Group (MBG) revenue declined 27.3 per cent year-on-year to $1.09 billion, as a 30 per cent drop in Latin American sales offset what the company stated were “robust” figures in North America and Europe.
It recorded a pre-tax loss of $50 million compared with a $5 million profit. The company said it took swift action to control expenses, which helped narrow the loss.
Lenovo noted the MBG continued to execute its core market strategy to develop in regions where it has notable competitive advantages. Moving forward, it will seek to return to profit growth by leveraging its product portfolio and technology, particularly in 5G, along with expanding its offering.
In April, Lenovo broadened its 5G portfolio with the Motorola edge and edge+.
Citing industry data, Lenovo said it gained smartphone market share by shipments in Latin America, North America and Europe.
On a company level, net profit grew 31 per cent to $213 million and revenue increased 6.7 per cent $13.3 billion. Turnover in its PC, Smart Device Business (PCSD) unit increased 10.1 per cent to $10.6 billion.
Both the MBG and PCSD are part of the company’s Intelligent Devices Group.Subscribe to our daily newsletter Back