Lenovo lastly worthwhile on cellular after shopping for Motorola
Lenovo is creating wealth in PCs regardless of a flaccid market, and declining cellular gross sales apparently aren’t bothering it, both. The corporate made a strong $300 million in internet revenue this quarter, although general gross sales have been down eight % over final yr. And its cell phone enterprise lastly stopped dropping cash, fulfilling Lenovo’s vow to return to cellular profitability inside 4 to 6 quarters after shopping for Motorola. Gross sales of Motorola units (quickly to grow to be Lenovo Moto) jumped 25 % over final quarter.
Its bread and butter PC gross sales aren’t doing dangerous, both. Even with the “Superfish” safety PR catastrophe, Lenovo elevated its PC share to 21.6 %, although the general PC market declined 10.9 %. That was helped largely by gross sales in its house nation of China, the place Lenovo dominates with a forty % chunk of the market.
Regardless of the income, PC and cellular gross sales dropped dramatically this yr for Lenovo, as they did with each different firm, together with Apple. The Chinese language firm managed to earn cash by operating a decent ship and is on monitor to chop $1.5 billion in prices for the yr. Its different saving grace is the server enterprise, which it expects will reap $5 billion this yr. In any occasion, the corporate’s string of 24 consecutive worthwhile durations was damaged final quarter, so it is little question glad to be again within the black.