Lenovo said revenues for its fiscal second quarter rose 7 percent from the year before to USD 10.5 billion. The operating profit lifted 24 percent to USD 329 million while the net profit advanced 19 percent to USD 262 million. Cash reserves at the end of the quarter amounted to USD 3.2 billion.
The company said it sold a record 35.6 million smartphones, PCs and tablets in the quarter and that the PC market share went to 19.7 percent.
Lenovo’s laptop PC sales at USD 5.5 billion were the largest contributor to revenues worldwide (52%), taking the company market share to 21 percent. Lenovo’s desktop PC shipments grew 6.4 percent worldwide, achieving a market share of 18 percent.
The company shipped 3 million tablets, up 30.6 percent from the year before, driven by sales outside China and strong performance in PCs. Smartphone shipments reached record levels, up 38 percent, driven by sales in more than 45 markets. The smartphone business remained robust in China but was stronger outside. India/Southeast Asia, Russia/EMEA emerging, and Latin America recorded unit growth of about 120 percent, 400 percent, and 150 percent, respectively. The business ended in fourth position at the end of the quarter but moved into third after the recent close of the Motorola investment.
The company said that it was able to become the number 1 on the broader PC+tablet market, with a market share rising 1.2 percent from the year before to 14.1 percent. Lenovo added that it wants to replicate the success by challenging the top two companies, with Mobile and Enterprise as its new growth engines. The three newer businesses, namely mobile and enterprise devices, Ecosystem and Cloud Business, together made up 15 percent of total revenue, up from 4 percent three years ago. The Lenovo App Store now counts daily downloads of over 30 million, more than double from the year before.
Still, the consolidated sales of Lenovo’s Mobile Devices, including smartphones and tablets, decreased 6 percent year-over-year to USD 1.4 billion, representing 13 percent of total revenues.
China brought in USD 3.8 billion in revenue, down 2 percent from the year before and accounting for 36 of total revenues. Asia Pacific revenues made up 15 percent of revenues, rising 3 percent to USD 1.6 billion. Revenues in EMEA advanced 33 percent to USD 3 billion while the Americas recorded flat revenues at USD 2.1 billion.
