Lenovo reports mobile revenue dip but sees sector as “growth engine”

Lenovo reports mobile revenue dip but sees sector as “growth engine”

06 NOV 2014

Following the closing of its Motorola Mobility acquisition and its purchase of hardware assets from IBM, Yuanqing Yang, chairman and CEO of Lenovo, said that “mobile and enterprise are now our new growth engines, and over time, like PCs, they will become our profit pool as well”.

But the company said that consolidated sales of Mobile Devices, including smartphones and tablets, decreased 6 per cent year-on-year in the second quarter, to $1.4 billion. It did not comment on what led to the decline, which came despite increased shipments.

The company said that global tablet shipments increased 30.6 per cent year-on-year to more than 3 million, driven by sales outside of its home market. And while it did not give an absolute figure, it said that smartphone shipments grew 38 per cent year-on-year to see it hold on to number four position – although the close of the Motorola deal takes it into the number three spot.

Its mobile business in China was described as “robust”, with demand outside China “even stronger”. India/Southeast Asia, Russia/EMEA Emerging, and Latin America, were described as “stars”.

On a group level, the company reported a profit of $262 million, up 19 per cent year-on-on-year, on revenue of $10.5 billion, up 7 per cent.

Laptop PC sales, up 9 per cent at $5.5 billion, were the largest contributor to Lenovo’s revenue. It also made $3 billion from desktop PCs, up 11 per cent year-on-year.


Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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