Lenovo mobile branch is profitable again for the first time since the Motorola acquisition

For the first time since the acquisition of Motorola by Lenovo in 2014, the mobile arm of the Chinese electronics manufacturer is breaking even, according to its own statement. The quarterly figures still show a small loss of 30 million dollars.

Lenovo’s Mobile Business Group posted revenue of $3.2 billion in the fourth quarter of 2015. MBG’s revenue comes from shipments of Motorola smartphones, Lenovo cell phones, tablets and TVs. The Motorola smartphones were good for 2 billion dollars. Although the operating loss of the mobile branch amounts to 30 million dollars according to the results, Lenovo calls the branch profitable again in its explanation.

The turnover of the smartphone division was nevertheless four percent lower than in the same quarter last year and Lenovo delivered considerably fewer mobiles. The volume decreased by 18.1 percent to 20.2 million units delivered. However, Lenovo has started targeting markets outside of China, such as Europe, where it sells more expensive Motorola devices. In markets outside China, Lenovo delivered 15 percent more smartphones than last year.

Lenovo states that it has a global market share of 5.1 percent in the smartphone market, ranking fourth. Only Samsung, Apple and Huawei have a larger market share. In January, Lenovo announced that it would sell Motorola smartphones under the name Lenovo Moto. Although the brand name disappears, the Motorola logo remains.

In the market for desktops, laptops and Windows tablets, Lenovo says it achieved relatively good results with its PC Group. Lenovo shipped 4 percent fewer PCs compared to the same quarter last year, but the PC market as a whole shrank 11 percent. Lenovo delivered 15.4 million PCs and thus has a 21.6 percent market share. In China, that percentage is now 40 percent. The PC Group’s quarterly profit before tax came in at $405 million, 18 percent less than a year ago.

Although the Lenovo Group’s total revenue declined 8 percent from $14.1 billion to $12.9 billion, the company posted a profit of $300 million, up 19 percent from the same quarter last year.