Lenovo Blitz PC Market Profits + Revenue Up No Word On Motorola OZ Strategy
The Company that has made two prior attempts at entering the Australian consumer PC market and failed has not said whether they will launch the Motorola brand of smartphones in Australia when they launch their consumer PC range in the fourth quarter.
Lenovo revenues for the quarter were $10.4 billion. While the company posted a year-over-year increase in overall revenues, smartphone sales reached 15.8 million units, an increase of 39 percent. Income from this division increased 22% to $214 million.
The Asia Pacific market saw an increase that was 3.7 times the previous year for 1.5 million units sold.
Recently Lenovo moved to accelerate its strategy to diversify away from the crumbling PC market, agreeing to buy IBM’s server unit and the iconic Motorola handset brand in deals worth over $5 billion. Lenovo’s Chief Executive Yang Yuanqing said he sees potential for more smartphone sales growth outside of China including in the Asia Pacific region of which Australia is the largest Country.
Overnight CEO Yang said Lenovo will prioritize profitable markets overseas rather than jostle with unidentified “unhealthy” rivals in China. Australia is believed to be one of the markets where Lenovo see growth opportunities.
Lenovo’s core PC business, which still accounts for around 82 percent of sales, continued to tighten its grip on global markets despite what many view as a long-term decline in the broader industry. Lenovo’s laptop sales rose 12 percent over the year while global laptop shipments fell 3.7 percent, the company said.
Yang said overnight that both the $2.9 billion deal with Google to acquire Motorola and the proposed $2.3 billion tie-up for IBM’s low-end server unit were “on schedule for closing.”
“This has been a quarter of milestones for Lenovo — record PC share, a number three ranking in worldwide tablets for the first time, and an even stronger number four global smartphone position,” said Lenovo CEO Yuanqing Yang. “As the PC industry recovers, the smartphone market continues its shift from premium to mainstream, and our acquisitions of Motorola Mobility and IBM x86 proceed toward completion, we see even more opportunity to keep growing rapidly.”