Lenovo reporting higher profits and slower sales
Lenovo has made public its Q3 2015/2016 financial numbers ending December 31, 2015 with mixed results. Though its weakening smartphone business is down from 14.092 billion USD a year earlier to 12.913 billion USD, the manufacturer as a whole made 14 percent higher profits between the same time frames to 294 million USD.
The Lenovo PC Group (PCG) experienced a revenue decline of 12 percent to 8.033 billion USD when compared to the same quarter a year earlier. Profits also dropped by 18 percent to 405 million USD. The Lenovo Mobile Business Group (MBG) responsible for smartphones and tablets saw an 18 percent drop in worldwide shipments YoY to just 20.2 million units. Tablet sales were down 14 percent to 3.2 million units while overall sales revenue for the group fell 4 percent to 3.245 billion USD. Operating loss ended at 30 million USD for this latest quarter.
The EMEA region accounted for 27 percent of Lenovo's worldwide sales. Nonetheless, PC shipments to the region fell 20 percent with a final revenue of 57 million USD compared to 122 million USD a year earlier.
Lenovo will continue to expand upon 2-in-1 convertibles and focus on Project Tango as revealed at CES 2016. As for its smartphone side, the manufacturer will look into entering emerging markets where competitors like Xiaomi and Huawei are less prevalent.