Mobile business revenues under pressure Lenovo bet on emerging smart devices

Yang Yuanqing finally felt a sense of relief. For years, the chairman and CEO of Lenovo Group had been under intense public scrutiny and criticism. Faced with mounting pressure, he made a promise in the second half of 2017 that "the company would soon return to a path of profitable growth." Following the release of the latest quarterly earnings report, Yang told a reporter from 21st Century Business Herald, "The heart is solid." On February 1, Lenovo Group (00992.HK) announced its third-quarter results for the 2017/18 fiscal year. According to the report, as of December 31, 2017, the company achieved total revenue of $34.712 billion in the first three quarters, representing a 4% year-on-year increase. The single-quarter revenue rose by 6% to $12.9 billion, marking the highest level in the past three years and the best performance in recent history. In terms of profit, the company faced a net loss of $222 million in the first three quarters and $289 million in the quarter due to a one-time non-cash charge of $400 million related to deferred tax assets, stemming from U.S. tax reform. However, Yang emphasized that this was not related to the company’s core operations. In fact, pre-tax profit for the third quarter reached $150 million, a 48% year-on-year increase—marking the first time in five years that Lenovo achieved year-on-year growth in pre-tax profit. Yang said, “During transitions, companies may face short-term pressures, but what matters is knowing which areas to improve and continuing to invest in infrastructure, team building, and technical capabilities. Financial performance will naturally follow.” The third wave of business has entered a growth track. In Yang’s view, Lenovo’s performance has begun to show consistent upward momentum. In the personal computer and smart device segment, revenue for the first three quarters reached $24.638 billion, up 5.31% year-on-year. The single-quarter revenue rose 8% to $9.25 billion, accounting for 72% of group revenue. Lenovo attributed the strong performance to innovative products and a better product mix, which led to higher average selling prices. In the data center business, revenue for the first three quarters fell slightly by 1.46% to $3.172 billion, but the single-quarter revenue hit $1.225 billion—the highest in the past two years. Meanwhile, revenue from other businesses such as Lenovo Venture Capital increased by 10.57% to $1.004 billion. “Lenovo’s third wave of business—smart devices plus cloud—is on the right growth path. For example, the AR smart helmet Mirage sold nearly 500,000 units in a single season. Other emerging devices were also showcased at this year’s CES, including the Lenovo Smart Display, the Mirage Solo VR headset, and the Mirage Camera. We are confident in the future profit growth of these products,” Yang said. It is worth noting that Lenovo’s mobile business remained sluggish overall. Revenue from mobile services in the first three quarters stood at $5.899 billion, down 0.62% year-on-year, while single-quarter revenue dropped 5% to $2.076 billion. In contrast, revenue from non-core devices—such as AR/VR and AI-related equipment—reached $170 million, up 123% annually. This sharp contrast raises questions about whether Lenovo will shift more focus toward these emerging areas in the future. “We will not ignore the PC and smartphone markets, especially PCs, which will remain a key driver of our profits,” Yang said. However, he added that smartphone market growth is becoming saturated, particularly in China. Therefore, Lenovo’s strategic investment in smartphones will mainly target Latin America and some mature markets like North America. Regarding emerging devices, Yang admitted that more effort will be invested in them. “This includes AR/VR and AI-driven smart terminals that can become part of every household.” He added, “When allocating resources, we will consider balance and focus on smart terminals that offer the greatest potential for future growth.” Lin Xinliang, chief analyst at IHS Markit, told 21st Century Business Herald, “Lenovo’s strategy of combining hardware with cloud computing and AI thinking is correct. The company has strong hardware capabilities in cloud computing and smart devices. However, the key to further development lies in the seamless integration of cloud services and smart devices, as well as improving user experience through software.” Change window “The strong performance of the PC business, the positive development of the data center segment, and the steady progress of the ‘equipment + cloud’ business, along with the strategic shift from distribution to direct profit orientation, have all contributed to Lenovo’s double-digit growth in revenue and pre-tax profit,” Lin said. Behind this growth lies a series of internal transformations. Yang pointed out that Lenovo is shifting from a single business model to a platform supporting multiple models, from a product-focused company to a customer-centric one, and is enhancing the overall customer experience. “In the past year, 10% of our evaluations for each department and position were based on customer satisfaction. Next year, this will increase to 20%. These metrics are essential drivers of business transformation and improvement,” Yang said.

Solar GEL Deep Cycle Battery

Discover the OREMA Solar GEL Deep Cycle Batteries, engineered with cutting-edge technology and rigorous quality assurance processes to deliver unparalleled performance and reliability. These batteries, featuring special separators and silica gel, are the epitome of innovation in the lead acid battery market.

Key Features of OREMA Solar GEL Battery:

Applications of OREMA Solar Deep Cycle Gel Battery:

Why OREMA Solar Deep Cycle Gel Batteries?

OREMA Solar GEL Deep Cycle Battery series GEL batteries specification table

12V Solar GEL Deep Cycle Batteries,solar gel battery,Gel Batteries,deep cycle gel battery,telecom battery,inverter battery

OREMA POWER CO., LTD. , https://www.oremapower.com