Lenovo still struggling in smartphone market
Can a manufacturer lead in both PC and smartphone markets simultaneously? We've yet to see any major PC manufacturer make significant headway in the saturated smartphone world and the latest fiscal results from Lenovo only add credence to this observation.
When compared to Dell or HP, Lenovo has been pushing itself harder in the smartphone market ever since its purchase of Motorola Mobility in 2014. Efforts have been futile so far as Lenovo's smartphone arm has been consistently in the red. For its latest fiscal year, the Lenovo smartphone division reported a loss of 738 million USD compared to 662 million USD a year earlier. Sales of the Moto Z have also been "strong" at just under 3 million units shipped since its launch last year.
Outside of smartphones, Lenovo's server division has reported a loss of 470 million USD. The PC business is the company's saving grace with profits nearing 1.5 billion USD to counterbalance the sinking smartphone and server divisions. Overall, the manufacturer is still in the green at 535 million USD down from 829 million USD in 2014.
It remains to be seen if Lenovo will continue pushing its aggressive smartphone plans or slowly phase out the Moto brand over time to cut losses. At this point in time, however, there's no denying that its smartphone branch is an ever-growing asterisk above the otherwise healthy PC division.