Lenovo revenue up 23% to $12.2 bn, net loss of $714 mn in Q2

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

“The realignment of our organization and the restructuring of our cost structure will deliver results in the 2nd half of the year,” said Yuanqing Yang, chairman and CEO of Lenovo.

Lenovo generated $8.1 billion (–17 percent) from the PC business. Its PC business includes PCs and Windows tablets. Poor demand in EMEA and Brazil pulled down 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.

The Chinese device maker generated $2.7 billion (+104 percent) revenue from mobile business. Its 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.

Lenovo shipped 18.8 million units of mobile devices – supported by 4.3 percent increase in market share in non-China devices market. Outside China accounted for 70 percent of volumes against 19 percent. It 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 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 $1.2 billion (+5.5 times) revenue from enterprise business. Its enterprise business includes servers, storage, software and services under both ThinkServer and System x brands.

System x, which was part of IBM earlier, had approximately $900 million in sales. Some of the client wins in the enterprise business include Alibaba, Tencent and Baidu.

Lenovo aims to achieve $5 billion revenue from enterprise business with good margin one year after the close of the System x deal.

Baburajan K
[email protected]