Lenovo smartphone biz dips 18% to 20.2 million units in Q3

Lenovo CEO Yuanqing Yang
Chinese IT and device major Lenovo today said smartphone volume declined 18.1 percent to 20.2 million units in Q3 fiscal 2016.

Lenovo’s Mobile Business Group sales dipped 4 percent to $3.2 billion. Motorola contributed $2 billion to Lenovo’s mobile revenues.

Lenovo achieved 15 percent growth outside of China — driven by emerging markets outside of China.

Lenovo said smartphone shipments rose 206 percent in India and 318 percent in Indonesia.

Smartphone volume outside China increased to 83 percent in Q3 from 75 percent in Q2.

Motorola smartphone shipments jump 25 percent quarter-to-quarter.

Lenovo today said its sales in the Enterprise Business Group rose 8 percent to $1.3 billion in Q3 fiscal 2016.

Lenovo’s Enterprise Business Group includes servers, storage, software and services sold under both the ThinkServer and System x brands.

System x has generated sales of approximately $1 billion, said Lenovo.

Lenovo said the overall growth was driven by hyperscale wins in China. EBG stabilized its data center business, while tapping cloud, hyperscale and hyperconverged opportunities. Lenovo aims to achieve $5 billion from the Enterprise business in 2015-16 fiscal year.

Lenovo posted net income of $300 million (+19 percent) on revenue of $12.9 billion (-8 percent) in its third fiscal quarter ended December 31, 2015.

Sales at Lenovo PC Group – including PCs and Windows tablets – fell 12 percent to $8 billion.

Lenovo achieved 21.6 percent market share by shipping 15.4 million PCs in the quarter. Lenovo has 19.7 percent share in consumer segment. The company is looking at Windows 10 to grow market share to 30 percent worldwide PC market share.

Yuanqing Yang, chairman and CEO of Lenovo, said: In PCs, we will leverage the consolidation trend, commercial PC replacement, and opportunities in innovative product categories to drive growth. In Mobile, we will build scale to accelerate our growth in emerging markets, breakthrough in mature markets with innovative products and premium brands.”