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Lenovo Q4 revenues fall 19% after drop in smartphone sales

2016-05-26 11:56:00| Telecompaper Headlines

(Telecompaper) Lenovo reported revenues for its fiscal fourth quarter to March down 19 percent year-on-year to USD 9.133 billion, as the company suffered from the slowdown in the PC market and falling mobile phone sales. Operating profit still improved, by 95 percent to USD 248 million, thanks to restructuring and cost-cutting efforts, and net profit was up 80 percent to USD 180 million. The company maintained its dividend at HKD 0.25 per share. The group shipped 10.9 million smartphones in the quarter and 66.1 million over the full year, down 13 percent. Lenovo said that while it achieved its goal of mobile profitability within 18 months of the acquisition of Motorola Mobility, the "integration efforts did not meet expectations". In particular, China shipments declined 85 percent, as the company failed to keep up with the shift to open-market sales and competition from premium brands business. In North America it also suffered from a poor product transition, missing the key year-end sales window for new products.

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