HONG KONG (Yosefardi) – Lenovo Group booked revenue of US$12.2 billion in the second quarter of this year, up 16% year-over-year.
Lenovo is successfully executing its business realignment plan and is on track to deliver US$ 650 million in the second half of the year and US$ 1.35 billion annually.
In the Mobile Business Group, or MBG, which includes products from Motorola, Lenovo-branded mobile phones, Android tablets and smart TVs, Lenovo quarterly sales were US$2.7 billion, up 104% year-over-year, due to the inclusion of revenues from Motorola.
Motorola contributed US$1.4 billion to Lenovo’s MBG revenues. In Mobile, Lenovo volume was up 11% year-over-year with 18.8 million units sold, led by growth outside of China where it saw a 4.3 point increase in market share year-over-year driven by a shift in strategic focus outside of China.
In the first half of this fiscal year, outside China accounted for 70% of volumes, while one year ago, it was only 19%.
In key emerging markets of Indonesia, Russia, India and Brazil, Lenovo outgrew the smartphone market by 12, 175, 48 and 4 points respectively.
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 record high 6.3 percent market share, selling 3.1 million units and taking share from the #1 and #2 players.
In the PC Group, or PCG, which includes PCs and Windows tablets, Lenovo’s quarterly sales were US$8.1 billion, with pre-tax income of US$406 million, down 17% year-over-year with foreign exchange fluctuations hurting demand in EMEA and Brazil.
Lenovo remained #1 for the tenth consecutive quarter with record high 21.2% market share, widening its lead over the #2 vendor.
In the Enterprise Business Group, or EBG, which includes servers, storage, software and services sold under both the ThinkServer and System x brands, sales were US$1.2 billion, up 5.5 times year-over-year due to inclusion of System x this year. System x had approximately US$900 million in sales.