Lenovo On A Roll As Revenues Climb 31% Motorola Pulls Down Profits
The Company who have snared 4% of the consumer PC market during the past four months are now a major PC brand at both JB Hi Fi and Harvey Norman.
On the downside net profits fell 4.5% following the recent aquisition of Motorola.
The world’s largest maker of personal computers has reported that last quarter profits were US$253 million down from US$265 million a year earlier, revenue rose 31% to $14.1 billion.
Lenovo in October closed its $2.91 billion acquisition of Motorola Mobility from Google Inc. and $2.1 billion purchase of IBM’s low-end server business.
“The two newly acquired businesses are achieving great momentum in their first quarter of integration,” said Lenovo Chief Executive Yang Yuanqing in a statement. “They are definitely becoming our growth engines.”
Motorola sold more than 10 million units for the first time in the quarter, the company said.
Founded in China, Lenovo acquired IBM’s PC business in 2005. The company, now based in both the U.S. and China, surpassed Hewlett-Packard Co. to become the No. 1 PC maker by shipments last year.
As the global PC market has become saturated, Lenovo has searched for new avenues of growth including smartphones and servers.
In the second half of 2015 the Chinese Company is tipped to mount a major assault on the smartphone market with a combination of Lenovo branded budget smartphones and premium branded Motorola smartphones. One option the Company has discussed is whether to only launch Motorola branded smartphones.