Lenovo’s Mobile Division Continues to Disappoint as Revenue Falls by 6%

Lenovo has been a PC market leader for quite some time but its mobile business has not done so well despite the acquisition of Motorola in 2014. The company reported its first quarter of fiscal year 2017 financial results with net income of $173 million on revenue of $10.1 billion. The accounted slow growth in the smartphone division was offset by PC sales.

The company also beat analyst estimates. According to a poll of 13 analysts conducted by Thomson One Analytics, the company was expected to earn net income of $133.4 million in the quarter on revenue of $9.7 billion. Lenovo has already said that it would now shift its focus toward smartphones with heavy marketing expected in China and the US.

“Our PC business delivered strong profits and our smartphone business stabilized compared to last quarter,” said Yuanqing Yang, Chairman and CEO of Lenovo. “Going forward, in PCs we will focus on high growth segments and leverage industry consolidation to resume growth. In smartphones, we will leverage innovative, differentiated products and continue to shift to higher price bands to drive growth and turn around this business.”

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