Lenovo Now Making Money In mobile after buying Motorola
The global mobile market chart clearly shows that Lenovo is now making money in PCs despite a drooping market, and its declining sales in mobiles apparently not bothering it.
The company made solid $300 million net profit just this quarter, even though its overall sales were down up to eight percent last year. And its mobile business finally stopped losing money, fulfilling Lenovo’s vow for them to return to mobile profitability within forecasted four to six quarters after its acquisition with Motorola. Sales of Motorola devices that soon will become Lenovo Moto jumped up to 25 percent over its last quarter.
So therefore Its bread and butter sales in PC are not doing bad. Even with “Superfish” security PR disaster, Lenovo increased its PC share up to 21.6 percent, even though overall PC market declined to 10.9 percent. That helped in large part by sales in China, where Lenovo dominates with 40 percent chunk of the total market.
Despite of its profits, PC and mobile sales dropped dramatically first month of 2016 for Lenovo, as with every other company, including Apple.
The company managed to make money by just running a tight ship and is back on track to cut $1.5 billion costs for year. Its other saving grace is its server business, which expects around $5 billion this 2016. But still, the company’s still string 24 consecutive profitable periods and was just recently broken in the last quarter, so it is no doubt for them to be back in black.