Lenovo says it will rely on Motorola to design, develop and manufacture its smartphones moving forward

In announcing its quarterly earnings today, Lenovo said that total revenue rose 3% year-over-year to $10.7 billion for the second quarter. But net income declined by 51% to $105 million. Those figures comprise all of the company's businesses. When it comes to smartphones and tablets, Lenovo said that slowing growth and increased competition has been hurting its results in the mobile sector.

Still, the Mobile Business Group rode on Motorola's coat tails, and the latter's $1.2 billion in revenue contributed more than half of the mobile group's $2.1 billion in revenue for the three month period. That was a 33% gain year-over-year. The company reported a pre-tax loss of $292 million in the mobile sector. For the period, Lenovo shipped 16.2 million smartphones, up 2.3% from the number shipped during last year's second quarter. 5.9 million of the handsets delivered had the Motorola brand on it, a decline of 31% year-over year.

Lenovo says that it will now rely on Motorola to design, develop and manufacture Lenovo's smartphone products. In addition, the company sees Motorola and the Mobile Business Group returning to profitability in the next two to three quarters. In tablets, Lenovo saw shipments rise 3.8% to 2.5 million slates. With 5.8% of the tablet market, Lenovo is number three globally and managed to steal away some market share from the two manufacturers ahead of it.


source: Lenovo