It would appear that Lenovo knows how to turn a profit, even when the tablet and PC market is slumping, judging by the latest figures. Their performance in the Chinese and North American markets are to thank apparently. The second quarter results are in and Lenovo is registering a return to profit, with which, it is purported to repay its secured loans.
Revenues were at $11.2 billion, an 8% decrease year over year and a 12% increase over the first financial quarter of the year. The evolution is huge, since the income for Q2 was $168 million (pre tax), compared to the loss of $842 million last year, which may have been linked to the purchase of Motorola…
Mobile business is doing fine and a $206 million asset sale also brought cash in. Sales of the Lenovo PC and Smart Devices Business Group (tablets and PCs) were at $7.8 billion, an 8% drop from last year, while the income was $405 million, a 3% bump up from 2015. Lenovo is the world’s biggest PC maker still, by market share, at 21.5%.
They’ve managed to maintain a grip on this title for 14 consecutive quarters now, shipping 14.5 million PCs over the last quarter and performing “marginally better than the industry” in the tablet area. The phones brought in $2 billion, helmed by Moto units and Lenovo’s latest Phabs. It’s important to mention that sales in China declined, by 4%, but other parts of the world, like Asia Pacific looked fine, with 1.9 billion sales. Europe, Middle East and Africa brought $2.7 billion in sales.