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.
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 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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