Lenovo only sold 20 million phones this past quarter, but returned to overall profits
The worldwide leader in PC shipments and one of the global top five smartphone manufacturers follows Apple, Samsung, Microsoft and Sony’s suit, among others, announcing a year-end quarterly financial report with equal highs and lows.
Well, overall, we guess the good news subdues the bad in Lenovo’s shifting camp, as the company’s restructuring plan is “swiftly concluded”, marking a rebound to general profitability and estimated savings of a whopping $1.35 billion annually.
But let’s get the bad news out of the way first. Only 20.2 million Lenovo and Motorola-branded smartphones were sold between October and December, down 18.1 percent year-over-year, which generated a pre-tax division loss of $30 million.
That’s however peanuts compared to the PC Group’s Q4 (or Q3, as Lenovo calls it) $405 million income, which contributed to solid net profits of $300 mil posted by the Chinese tech giant at the end of the day. Speaking of, the domestic market seems less and less friendly to Lenovo phones, as 83 percent of the total volume was shipped to foreign buyers, and outside China, the company actually reported 15 percent year-on-year growth.
The target going forward is to “build scale and efficiency to accelerate our growth in emerging markets, breakthrough in mature markets with innovative products and premium brands, and expand in the open market in China with a stronger product portfolio.” Otherwise put, both Motos and Vibes shall live and prosper.
As far as PCs and Windows tablets are concerned, sales and revenue dropped in the final 90-day timeframe of 2015, but share reached a record high 21.6 percent, sparking hopes of a 30-percent milestone before long.
Source: Business Wire