Lenovo's Motorola-led mobile unit continued to struggle in Q4 2017

Lenovo's Motorola-led mobile unit continued to struggle in Q4 2017
Lenovo’s smartphone business continued to struggle in the quarter ending March 31. The period in question corresponds to Q4 of Lenovo’s fiscal 2017 year and, despite an improvement over last year’s results, the overall mobile unit is still quite a way from becoming profitable.

During the three-month period, the business recorded a pre-tax loss of $142 million, a significant improvement over last year’s loss of $220 million. However, the results aren’t because of an improved business performance. Instead, the unit actually saw a revenue decline during the period of over $430 million, down to $1.34 billion, with the company confirming that its aggressive cost-cutting measures were the driving force behind the improved financial results. Nevertheless, Lenovo appears pretty optimistic about its future in the smartphone market.

In the financial report, the Chinese brand detailed how Latin American remained a huge market for its mobile brands – primarily Motorola – with the company recording revenue growth of 13%. Additionally, it appears Motorola’s strategy in the US is also paying off, with North American shipments growing a huge 54% and overall market share also rising from 2.7% to 3.8%.

In terms of future plans for the business, Lenovo-owned Motorola will be simplifying its product portfolio in both North and Latin America, as well as Western Europe, while also improve cost efficiency. However, considering the company’s recent Moto E5 and Moto G6 lineups total six new devices, it’ll remain to be seen how the brand plans to streamline its portfolio going forward.

source: Lenovo via: Business Wire

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9 Comments

1. Cat97

Posts: 1797; Member since: Mar 02, 2017

Everybody but Apple is struggling, unless they lower their prices ! You can copy anything from Apple, but copying their prices will never work. Hopefully the manufacturers will understand that sooner rather than later. And if they want more sales, they need to but some big batteries in their phones and push the technology to the limit, instead of blindly following one another.

4. Humanoid

Posts: 1226; Member since: Dec 11, 2017

Not that simple... Apple can spend $350 to built a phone because high number of sales is guaranteed. Same for Samsung. Other cant, because unless they overcharge costumers, they wont earn money back.

2. Pureviewuser1

Posts: 148; Member since: Mar 28, 2016

I agree with you completely

3. Nimbus

Posts: 442; Member since: Apr 02, 2018

They need to step up on their 2 years software update promised on their G,X line midrange smartphones instead of giving 1 year software update and price it low for its specs then i can buy their product loyally.E,C line smartphones should receive security update for 3 years and one software update bcoz they sell less in numbers with low specs but huge battery.Z line should receive software updates in time rather than taking it time to update it in right period.

5. WAusJackBauer

Posts: 453; Member since: Mar 22, 2015

Way too many phones

6. wesley.

Posts: 208; Member since: Aug 06, 2013

I'm not digging the big, round sticking out camera on Motorola phones. Battery sizes getting smaller now too, compared to previous years. Motorola need to step up their game. Better design, better cameras and better support.

7. MuddyCow

Posts: 90; Member since: Oct 09, 2014

The Z3 Play could improve overall sales, the 636 feels a bit weak for the price the Z Play line is usually sold at, but most people don't care about that. On the other side my Moto G4 was left on 7.0 but is on April 2018 security updates, so I don't know if I can complain.

8. ryq24

Posts: 874; Member since: Oct 17, 2011

The rise of Huawei Oppo and Vivo are hurting Lenovo and other smaller Chinese phone brands and also LG and Sony.

9. Sammy_DEVIL737

Posts: 1529; Member since: Nov 28, 2016

This happens when you just crowd 100s of phones(G6/play/plus E5/play/plus) to market and don’t promise regular monthly updates.

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