Lenovo reported revenues for its fiscal third quarter of USD 14.1 billion, up 31 percent year-on-year. Adjusted pretax profit, excluding costs for the company's takeovers of Motorola Mobility and IBM's x86 server business, rose 8 percent to USD 348 million. Including these costs, net profit for the three months to December fell 5 percent to USD 253 million.
PCs accounted for 65 percent of the company’s revenue, down from 81 percent a year ago, while Mobile delivered 24 percent and Enterprise contributed 9 percent. Lenovo shipped 16 million PCs in the quarter, up 4.9 percent year-over-year. Motorola shipped over 10 million phones, more than double the year-earlier period, and contributed USD 1.9 billion to Lenovo's total USD 3.4 billion in mobile revenues.
Lenovo said Motorola is on track to be profitable within 4-6 quarters of closing the acquisition. Combining Motorola and Lenovo-branded devices, the company became the third-largest vendor of smartphones worldwide. In the tablet market, it took a 4.8 percent market share, with 3.7 million shipments, up 9 percent year-over-year.
China accounted for 29 percent of Lenovo's revenues in the quarter and about 40 percent of its mobile phone shipments. Revenues in its home market were up only 1 percent to USD 4.1 billion, due to tough competition in the mobile phone market. While Motorola has recently launched its phones in China, the Lenovo brand is spreading elsewhere, with Lenovo phones now available in 67 countries worldwide.
