When Google announced its quarterly financial results last week, the company’s report accounted for the sale of Motorola. Now Motorola’s new owner, Lenovo, is reporting its own financial results and it looks like Q3 was a record quarter for Moto smartphone sales.
Lenovo on Tuesday revealed its quarterly results for its third quarter ended December 31st. Lenovo and Google completed the Motorola sale in October, so this is Lenovo’s first quarter with Lenovo on the books. Lenovo reports that Motorola phone shipments exceeded 10 million units. That equates to a 118% increase compared to the same quarter last year and a $1.9 billion contribution to Lenovo’s Mobile Business Group revenues. The company expects Motorola to reach profitability within 4-6 quarters.
“This quarter, we are at the starting line of a new race, but the results show that we have the right strategy, we made the right acquisitions and we executed well globally, so I am confident we are ready to win,” said Lenovo CEO and chairman Yuanqing Yang, later adding, “Motorola is already a global strength: for the first time it sold more than 10 million units in the quarter and it is now re-entering the China market.”
It was just last month that Lenovo announced plans to reintroduce the Motorola brand in China. The company started taking Chinese pre-orders for the 2014 version of the Moto X last week. Reports from earlier this week indicate the phone hit one million pre-orders within about five days.
Lenovo recorded a total of $14.1 billion in revenue for the quarter with gross profits of $2.1 billion and net income of $253 million. The company’s mergers and acquisitions have also helped the company diversify and rely less on earnings from its PC business. The company said that a year ago, PCs accounted for 81% of its business. That number has now fallen to 65% and mobile accounts for a full 24% of Lenovo’s business.