Lenovo’s Mobile Business Achieved Profit in Ten Years’ Time
For the first time in ten years, Lenovo Holdings’ mobile business has achieved profit, mainly because its mobile business has withdrawn from 70 to 80 markets overseas.
“Mobile phones are our long term focus. After we begin to gain profits and our business gets on a right track, we will continue investing in innovation, channels and branding,” said Lenovo chairman and CEO Yang Yuanqing.
According to Counterpoint, the sales of Motorola for Q2 2018 ranks forth in the American market, with a market share of 6 percent. In the future, Lenovo’s mobile business will focus on four major markets including China, India, North America and Latin America.
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The 2018 Q2 report of Lenovo showed that Q2 revenue was $13.38 billion, with a year-on-year increase of 14 percent. The net profit has reached $168 million, a 21 percent increase from last year.
Among them, the personal computer and intelligent device business under Lenovo’s Intelligent Device Group (IDG) have generated a total turnover of $10.2 billion, increasing by 18 percent year-on-year. According to the International Data Corporation (IDC), for the first three quarters of 2018 ending on September 30, the global sales of Lenovo’s computers ranked first in the world, accounting for 24 percent of the total market share.
According to the report, Lenovo’s total revenue for the first half of this fiscal year was $25.3 billion, with a year-on-year increase of 16 percent, and its net profit was $245 million, a year-on-year increase of 268 percent.
“Today’s results show that Lenovo’s focus on ‘Intelligent Transformation’ continues to successfully underpin our growth in both revenue and profitability,” said Yang.
“Intelligent Transformation” marks Lenovo’s transition towards AI deployments. On April 9, Lenovo first brought up the concept of four tracks of transition, which are the Smart Internet of Things, smart industries, smart channels and smart services.