It’s been a good quarter for the Search giant Google, LG and Lenovo. Lenovo announced their Q3 earnings last week and reported $14.1 billion revenue, a hike of 31% YoY. Meanwhile Samsung also announced their Q4 reports but their revenue went down by 21 percent.The reason behind Lenovo’s success is its strong PC business which accounted for 65 percent of the company’s total revenue. Last year the PC segment accounted for 81 percent of Lenovo’s revenue while this year the company has expanded its smartphone business which grabbed 24 percent of its revenue.
Lenovo’s gross profit grew up to $2.1 billion which accounts for 54% YoY while Operating profit for the quarter decreased 3 percent year-over-year to $325 million and Net cash reserves as of December 31, 2014, totaled $1.3 billion.
Yuanqing Yang, Chairman and CEO of Lenovo said,
“This quarter, we are at the starting line of a new race, but the results show that we have the right strategy, we made the right acquisitions and we executed well globally, so I am confident we are ready to win. Our core PC business maintained its leading position and further improved profitability. The two newly acquired businesses are achieving great momentum in their first quarter of integration. They are definitely becoming our growth engines. Motorola is already a global strength: for the first time it sold more than 10 million units in the quarter and it is now re-entering the China market. Meanwhile, we have a strong start with the System x integration, even while we further refine and develop it, leveraging Lenovo’s operational excellence and efficiency to be even more competitive. I remain fully confident we will meet all of our financial commitments this year, and also that we are on the right track to win in the long term.”
Lenovo shipped over 10 million units of mobile devices under MBG group comprising products from Motorola investment, Lenovo-branded mobile phone business, Android tablets and TVs accounted sales worth $3.4 billion with YoY of 118% adding up $1.9 billion to MBG’s revenue.
Lenovo’s strong PC segment includes PCs and Windows tablets which made record of high pre-tax income (PTI) of $494 million. In this quarter the company shipped 16 million PCs which is 4.9% more YoY. Lenovo also sold its 100 millionth ThinkPad laptop PC, marking a historic milestone.
With the collaboration of Motorola Lenovo became the largest smartphone vendor. Lenovo drives about 60 percent of its mobile phone volumes outside China, having entered 67 countries in the last two years. With Motorola Lenovo managed about 6.6% market share and global market share of 4.8% with over 3.7 million shipments.