Lenovo Presents The Last Quarterly Balance: Motorola Starts to Compensate

A few weeks ago we talked about path of the Motorola brand, which has survived to the time of smartphones under the tutelage of others. Google was the first who acquired it in 2011 at this stage and with which we live the resurgence of this brand and the birth of which until last year were motorcycle series (E, G and X).

The witness went on to Lenovo when Google sold it in 2014, and after one year it seemed that it did not give the expected results. November was a good month for smartphones division when the quarterly balance sheet that showed Lenovo saw that by first time in six years suffered losses. But today has to again present figures and it seems that Motorola gives respite to the company.

According to published Lenovo in its report for the third quarter of fiscal year 2015 (completed in December), the company has achieved the balance in its mobile division after more than one year since they acquire the part of Motorola. In general revenues have increased with respect to the same period of the previous year.

Starting the year on the right foot

As we see in the report, the net revenue amounts to 300 million dollars, a result that exceeds expected by analysts and a very good thing considering the losses that were recorded in the second quarter (714 million dollars). This shows that after the restructuring, which was the main reason for the bad past issues, the company is starting to get.

Así, revenues for the quarter were a total of 12,900 million dollars, being 8% lower if compared with the obtained last year in the same period, but around 700 million more compared to the second quarter. In terms of the costs of the restructuring (which the company gives end), qualifies that they were lower thanks to the savings that caused the measures of adjustment of last August, according to its calculations will be of about 1,350 billion dollars at the end of the fiscal year and that currently goes as planned.

The mobile division: the new star

Completed restructuring process, Lenovo announced that the Mobile Business Group (which includes tablets, smartphones and smart TVs under the brand Lenovo and Motorola) meets its commitment to stability after the acquisition of Motorola. Sales, which already include two months of the Motorola, amounted to a total of 3,200 million dollars, 4% below those obtained in the third quarter of 2014. Fagocitada brand provides a total of 2,000 billion dollars of this amount.

Are better than the last quarter figures, whose sales were $ 2,700 million, and in fact the Motorola products contributed 600 million more. Total losses of the division (without taking into account taxes) are at $ 30 million, which means a remarkable recovery considering that they amounted to 270 million dollars in the previous balance sheet.

The distribution of Motorola devices increased by 25% compared with the second quarter

It clarifies success in emerging markets where have sales grown 15 percent, among which stand out China and Indonesia with respective 206% growth, and the 318%. In fact, sales volume obtained outside of China is higher during the last quarter, from 75 to 83%, and in this country indicating that the restructuring begins to compensate. And as for Motorola, more positive data: the distribution of devices increased by 25% compared with the second quarter.

Hopes by Lenovo

It explains Yuaging Yang, CEO of Lenovo, that the figures obtained on this occasion are record despite the fluctuations of the markets and the descent suffering from computers. The beneficiary of this: the mobile division, which can be the bastion of the company this year given the general downturn of the computers and which continues to need investment.

Although we sufriésemos the impact of the slowdown of the world economy, Lenovo has achieved a record in the benefits that we reinvertiremos our commitment around the mobile division in this last quarter.

About the plans of this section, the company joins the trend of other and drawing the pull already experiencing, puts in the spotlight to emerging markets to accelerate growth in the same. As for the rest, the strategy will be the of achieve innovative products and focus on the most exclusive products or premium. As it could not be otherwise, China is contained in the company’s expansion plans, according to the words of the same, “a powerful catalog”.

Lenovo puts in the spotlight to emerging markets to accelerate growth in them

In the pipeline, future agreements and collaborations in relation to continue to grow as a company. And the conviction that the transformation of its business model and its new dual strategy of brands (Lenovo Vibe and Lenovo Moto) will take them to obtain best results. It will be interesting to see if this is finally as well throughout the year.