Lenovo makes $714 million loss on $12.2 bn revenue in Q2

Lenovo phone launch

Lenovo Group said its total revenue rose 23 percent to $12.2 billion in its second fiscal quarter ended September 30, 2015. It reported a net loss of $714 million.

The Chinese device maker generated $2.7 billion (+104 percent) revenue from mobile business. The 104 percent growth is due to the inclusion of Motorola business. Its total mobile business includes products from Motorola, Lenovo-branded mobile phones, Android tablets and smart TVs. Motorola contributed $1.4 billion to Lenovo’s mobile revenues in Q2.

Lenovo today said it shipped 18.8 million units of mobile devices in Q2 ended Sept. 2015 – supported by 4.3 percent increase in market share in non-China devices market.

Sales outside China accounted for 70 percent of volumes against 19 percent achieved in Q2 fiscal 2015. Lenovo achieved 12 point growth in mobile business in Indonesia, 175 point in Russia, 48 point in India and 4 points in Brazil.

In the tablet market, Lenovo claims that it outgrew the market by almost 14 points with nearly 1 percent growth verses a market decline of 12.6 percent. It strengthened its worldwide #3 position with 6.3 percent market share, selling 3.1 million units beating Samsung and Apple.

Lenovo generated $8.1 billion (–17 percent) revenue from the global PC business. Its PC business includes PCs and Windows tablets. Poor demand and currency fluctuations in EMEA and Brazil impacted the PC business.

Lenovo shipped 15 million PCs. Lenovo has 13.3 percent share in North America; 19.3 percent in Asia Pacific; and 15.3 percent Latin America. Lenovo aims to achieve 30 percent worldwide PC market share.

Baburajan K
[email protected]