Supply issues slow Lenovo mobile recovery - Mobile World Live

Supply issues slow Lenovo mobile recovery

21 FEB 2020

Lenovo’s mobile business booked a double-digit revenue drop in its fiscal third quarter (calendar Q4) as it faced global supply constraints, but profitability continued to improve.

Mobile Business Group (MBG) revenue fell 17 per cent to year-on-year to $1.38 billion. While operations in Latin America, a core market, remained robust, Lenovo stated it ran into challenges in other markets due a shortage of components.

The mobile group recorded its fifth consecutive quarter of profitability, with a pre-tax contribution of $3 million during the quarter.

Lenovo said the recent period “presented multiple industry-wide business challenges including ongoing geo-political uncertainties and component supply shortages.”

Looking ahead, the company said its mobile business will “continue to strengthen profitability while driving growth in new markets”. It added the launch of the Motorola Razr signals its re-entry into the premium segment, which will be an ongoing focus in the future.

On a group level, net profit increased 11 per cent to $258 million, with revenue flat at $14.1 billion.

Revenue of the Intelligent Devices Group (comprised of its PC, Smart Device Business and MBG) was also flat (up 0.5 per cent) at $12.5 billion, with the same picture in its Data Centre Group, where the figure was $1.6 billion.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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