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- Thanks to Lenovo, Smartphone Sales for Motorola has doubled.
Motorola has sold 10 million headsets during the third quarter of 2014 and this is said to increase.
Today the Lenovo Group has revealed its consensus-beating results for the third fiscal quarter which ended December 31, 2014. The company showed a strong PC business and fast traction in the integration of its Motorola Mobility and former IBM System x, x86 server investments.
The quarterly revenue for the company reached an outstanding US$14.1 billion. This shows a 31 percent increase year-over-year for the Lenovo Group. Moreover the third quarter net income for the company was US$253 million which is actually down by 5 percent while on the other hand net income before non-cash M&A related accounting charges was US$327 million. This was up by 23 percent. Overall the Lenovo Group showed a quite favorable financial position than before.
Even with the diversification with the addition of the Motorola and System x businesses, Lenovo’s core PC business remains the strongest. PCs now account for 65 percent of the company’s revenue while Mobile contributes only 24 percent and Enterprise on the other hand contributes 9 percent. However, just last year the company derived 81 percent of its revenue from PCs. So it shows that Lenovo has always been dependent on its PC sales in order to generate revenue.
Yuanqing Yang the chairman and CEO of Lenovo stated that this quarter the company at the starting line of a new race and the results show that they are headed towards the right path with the right strategy. He also stated that the company has made the correct acquisition decisions and have executed well globally so he is very confident that the company will win.
He also explained that the company’s core PC business has still maintained its leading position and has even improved profitability. He explained that Motorola is already a global market name and for the first time it sold more than 10 million units in the quarter and will now be entering the Chinese market again.
Mr. Yang alos commented upon the system x and stated that the company has a strong start with the system x integration and the company is still refining and developing it further. In the Mr. Yang said that he is very confident that Lenovo will achieve all its targets and will definitely win in the long term.
Coming back to the financial position of the company, the gross profit for the third fiscal quarter has increased by 54 percent to US$2.1 billion. The net cash reserves of the company as of December 31, 2014 have totaled to US$1.3 billion.
Lenovo has always been ahead in innovation and has always come up with new models and delivered impressive products which helps to increase sales and profitability. In October we saw that Lenovo executed a major global consumer product launch and announced a new family of Yoga convertible PCs and tablets. Moreover at the Consumer Electronics Show that took place in Las Vegas recently, Lenovo won 77 awards across every category.
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