Arab Today, arab today lenovos annual revenue up 20
Last Updated : GMT 10:29:20
Arab Today, arab today
Arab Today, arab today

Profits miss target

Lenovo's annual revenue up 20%

Arab Today, arab today

Arab Today, arab today Lenovo's annual revenue up 20%

Lenovo
Hong Kong - Arab Today

China's Lenovo said Thursday revenue rose 20 percent in its past fiscal year, helped by its purchase of Motorola last year as the PC maker diversifies into the smartphone market, but net profit growth slowed to just one percent.

The world's biggest personal computer maker said revenue reached $46.30 billion for the year ending March 31.

Revenue from the company's mobile business including Motorola increased 71 percent year-on-year to $9.14 billion, making up about a fifth of the revenue total.

But net profit was up only one percent at $829 million owing to increased operating expenses, the company said in a filing to the Hong Kong stock exchange.

That was slightly below the expected net average of $830.2 million by 26 analysts polled by Bloomberg News, which said it was the slowest net profit growth in five years.

The PC maker had seen its net profit rise 29 percent in the previous financial year, driven by record smartphone sales.

"The rise of new technology and market trends, particularly the social mobile Internet, has posed market opportunities and challenges as consumer behaviour is changing," the company said in the filing.

Smartphone shipments worldwide grew more than 50 percent year-on-year to 76 million "driven by aggressive business expansion in emerging markets outside of China from Lenovo brand products and strong growth of the Motorola brand products", it added.

The group's non-PC revenue contribution rose to 28 percent from 18 percent in the same period last year, while operating expenses were up almost 40 percent at $5.57 billion.

Simsen Financial Group associate director Jackson Wong said the results were a good sign, but investors are hoping the company will speed up the development of its mobile business.

"It's not that bad, it's just that a major part of their profit is still from the PC side," Wong said, explaining that it is an industry that is receding.

"They need to grow their mobile side at almost 100 percent annually so that in three to four years the mobile side will attribute more revenue," he said.

"The industry is transforming so quickly, so they cannot do it slowly."

The group's PC revenue rose five percent year-on-year to $33.35 billion for the reported period, with revenue from the sector representing over 70 percent of its total revenue.

"Lenovo believes its strong PC leadership remains a solid profit engine with plenty of further opportunities for profitable growth," it said.

In its third quarter results published in February, Lenovo said mobile phone shipments had surged almost 80 percent thanks to its $2.9 billion purchase of Motorola from Google in October.

That buyout happened soon after Lenovo paid $2.3 billion for IBM's low-end server business as it looked to diversify beyond PCs.
Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lenovos annual revenue up 20 Arab Today, arab today lenovos annual revenue up 20

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lenovos annual revenue up 20 Arab Today, arab today lenovos annual revenue up 20

 



Arab Today, arab today Designer Rania Adel reveals her new collection

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: أخبار الاقتصاد
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 23:13 2017 Sunday ,18 June

New ransomware virus attacking mobiles in Oman
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday