Lenovo’s second quarter result is disappointing when analyzed on yearly basis, but has presented a positive growth in quarterly terms. The Chinese manufacturer has recorded a revenue of $11.2 billion in the second quarter, an 8% decline when compared to the previous year same quarter. However, this is a 12% increase when compared to the last quarter.
Lenovo’s gross profit has increased 2% year-on-year and has reached $1.6 billion. The operating profit stood at $215 million for the second quarter.
Commenting on the performance, Yang Yuanqing, chairman and CEO of Lenovo said, “Market conditions remained challenging but we delivered solid results. Our PCSD business maintained leadership and strong profitability, our Mobile business had good quarter-to-quarter volume growth and margin improvement, and our Data Center business is actively addressing its challenges.”
Lenovo’s mobile phone business includes Motorola devices and Lenovo devices. They together showcased sales of $2 billion, a 12% decrease when compared to the last year. However, this is a 20% surge when compared to the previous quarter. According to Lenovo, the shipment has increased 25% to 14 million. Among both the brands, Motorola-branded phones has presented a 40% increase in the shipments when compared to the previous quarter. Moto G, Moto Z and Moto Mods are said to be the successful launches.
In Asia-Pacific, Lenovo registered sales of $1.9 billion (17% of the company’s total worldwide sales). In Europe, Middle East and Africa, Lenovo had sales of $2.7 billion (24% of company’s total sales), and in Americas, it marked a sale of $3.4 billion (30% of company’s total sales).
It scored well in PC sales, acquiring 21.5% of worldwide market share. It shipped 14.5 million PCs in the second fiscal quarter. In the case of tablets, it saw declines of 14.7% year-over-year.