Following the purchase of Motorola, Lenovo has been going through an era of change as it recovers from its first loss in six years last quarter. The company set out to break even in the mobile business four to six quarters following its purchase of Motorola, and has achieved that goal in the last quarter.
Overall, looking at Lenovo’s Q3 earnings, revenue is $12.9 billion USD, down eight percent compared to last year, but profits increased by 17 percent year over year to a record number of $320 million. One main cause of this return to profitability is an all-time high PC market share of 21.6 percent, including an over 40 percent segment of China’s PC market.
On the mobile side of the business, sales dropped by 18.1 percent from last year, with 20.2 million phones sold. However, business outside of China increased from 75 to 83 percent in the last year, and shipments in growth markets like India and Indonesia were up 206 and 318 percent respectively.
Lenovo has only just turned around losses in its mobile business since incorporating the Motorola brand, and given weak currencies around the world, further growth will be hard to come by for the company looking into 2016.
It remains to be seen if any PC or mobile growth is possible across the market until economic conditions improve worldwide.
Source: Business Wire