Lenovo’s revenue up by 3%; PC market record high with 20.6%
Lenovo Group has unveiled results for its first fiscal quarter ended June 30, 2015. Quarterly revenue was US$10.7 billion, a three percent increase year-over-year. First quarter pre-tax income decreased 80 percent year-over-year to US$52 million. Net income declined 51 percent year-over-year to US$105 million.
Lenovo faced significant declines in the global PC and tablet markets, as well as slowing growth and increasing competition – especially in China – in smartphones. It also saw a rapidly shifting technology demand landscape in the enterprise business.
Despite this tough environment, Lenovo continued to deliver solid results. Its PC business reached record worldwide share of 20.6 percent. It gained share in every geography and achieved the # 3 position in the critical U.S. market, with record high share of 13 percent. Lenovo gained nearly one point of share and strengthened its #3 position in the tablet market. For the third consecutive quarter, the enterprise business had positive operating margin, before non-cash M&A-related accounting charges.
“We will reduce costs in our PC business and increase efficiency in order to leverage industry consolidation increase share and improve profitability. We will come through these efforts as a faster, stronger and better aligned global company.” said Yuanqing Yang, Chairman and CEO of Lenovo.
Specific realignment actions Lenovo is undertaking to return to growth include, Restructuring the Mobile Business Group (MBG) to align smartphone development, production and manufacturing and better leverage the complementary strengths of Lenovo and Motorola; Focus and repositioning the Enterprise Business Group; Accelerating the drive for 30 percent share in PCs; Drive for greater efficiency across all of Lenovo’s functions.