Lenovo 2Q17 earnings continue sliding, net income achieved
The challenge for Chinese manufacturer Lenovo is progressive. PC and tablet sales continue to sag worldwide while the smartphone market seems to be peaking at this point. But it has been able to struggle through its second fiscal quarter with multiple innovative if somewhat gimmicky product launches.
Revenue compares 8 percent poorer from a year ago to $11.2 billion. While the number is up 12 percent from the sequential quarter, that number compares to a 14 percent gain from last year. There was net income of $157 million, compared to a loss of $714 million last year.
Income from PCs in North America bucked the market trend, growing 14.7 percent year-to-year and 5.2 percent worldwide. Gaming sales jumped 36 percent, detachable solutions rose 52 percent while so-called “millennial” or affordable PCs tripled.
The company was happy to proclaim that Motorola is now able to make some major stat gains including sequential volume — up 25 percent in general and 39 percent for Moto-branded phones. Operating margins inched up by 4 percent from last quarter while average sales price stepped up by 18 percent annually. Units-wise, 14 million smartphones were sold, a 25 percent annual improvement with most of it in the Asia Pacific and Indian regions.
While the Mobile Business Group reported a 12 percent decline in revenues, the unit is expected to “turn around” by mid-2017.