THE Motorola yielded good results to Lenovo in the second quarter of 2022. According to the Chinese brand’s financial results, the smartphone division grew for the tenth consecutive quarter. The boom in the cellphone brand is related to a “hypergrowth” in strategic markets, such as Latin America.
The results of Lenovo, owner of Motorola, were released on Thursday (3). In a statement, the company stated that the group’s profit grew by 6% year-on-year, hitting a result of US$ 541 million. Revenue was US$ 17.1 billion, an increase of 3% compared to the same period last year.
The highlight is the cell phone division, which comprises Motorola. “The smartphone business achieved its tenth consecutive quarter of profitability as it continues to enrich its portfolio with innovative new products,” they announced. The sector also defended “its strong positions” in Latin American and North American markets, “achieving hyper-growth in expansion markets”.
Motorola grows, but the sector has a reduction in profits
Despite the “hypergrowth” in cell phone sales, this does not mean that the entire business sector has soared. In the balance sheet, Lenovo reported that the Smart Devices Group (IDG), which comprises computers, tablets, smartphones and the like, had an 8% reduction in operating profit. Revenue fell 7% year-on-year.
“Even with pressure on industry profitability due to the challenging market, IDG was still able to deliver leading profitability with an operating margin virtually flat at 7.5%,” they noted. “[O] smartphone business will focus on portfolio expansion and differentiation to take advantage of accelerated 5G adoption.”
Lenovo also grew in Asia in the first quarter
This is not the only time Lenovo has achieved significant traction in 2022. In the first quarter, IDG had a 21% growth in revenue compared to the same period in 2021. But the highlight is the countries that comprise the Asia region. -Pacific (excluding China), whose increase was 56%.
Other places showed good results. This is the case in Europe, the Middle East and Africa, which grew by 24% year-on-year. In Latin America and North America, the business group’s presence increased by 21% and 14%, respectively, in the second fiscal quarter of 2022.