Lenovo's Mobile Business Sees a Resurgence: Revenue Up 43% YoY to a Record High, Targeting Global Markets

Lenovo's Mobile Business Sees a Resurgence: Revenue Up 43% YoY to a Record High, Targeting Global MarketsOn the morning of November 15th, Lenovo Group released its financial results for the second quarter of fiscal year 2024/25, ending September 30, 2023. The report revealed that Lenovo's revenue reached RMB 127

Lenovo's Mobile Business Sees a Resurgence: Revenue Up 43% YoY to a Record High, Targeting Global Markets

On the morning of November 15th, Lenovo Group released its financial results for the second quarter of fiscal year 2024/25, ending September 30, 2023. The report revealed that Lenovo's revenue reached RMB 127.9 billion, a year-on-year increase of nearly 24%, with strong double-digit growth across all core businesses. Excluding non-Hong Kong GAAP adjustments, net profit reached nearly RMB 2.9 billion, a year-on-year increase of 48%, with revenue from businesses other than PCs accounting for nearly 46%.

Beyond the continued strong performance of its PC business, with revenue growing 12.1% year-on-year, the most surprising highlight of the report was the resurgence of Lenovo's mobile business. Revenue grew by a remarkable 43% year-on-year, marking its highest quarterly sales ever. According to the latest report from TechInsights, Lenovo is leading the market with a 26% growth rate, setting a new record for market share in the past decade.

As a former champion of the era, how did Lenovo manage to escape the fate of Nokia and HTC, which have all but faded from the market, and achieve a resurgence in mobile sales?

Lenovo's Mobile Business Revival can be Analyzed from Two Perspectives:

1. A Sensible Product Portfolio to Meet Diversified Needs

Lenovo's mobile business continued to focus on innovation within its high-performance, high-value-for-money product lines this quarter. It launched the motorazr foldable phone, motoG, motoS, and motoEdge series in both domestic and international markets, aiming to cater to the diverse needs of users in different markets through a niche strategy.

For example, the motoS50, one of the few mid-range compact phones currently available, boasts a compact design and stylish aesthetics, making it one of the most impressive mainstream models this year.

2. The Enduring Influence of the Lenovo-Motorola Brand

Motorola is one of the few brands that can easily navigate global markets. In its home market of North America, Motorola already holds a 12% share. With a strategy focused on expanding from China into Southeast Asia, South Asia, and the Middle East, and from the US into Latin America, followed by a push into Europe, Lenovo-Motorola may have greater growth potential than domestic leading mobile phone brands.

According to IDC data, Lenovo's mobile revenue outside of China is currently ranked fifth globally. Within the smartphone product segment, according to IDC's second-quarter global phone data, Motorola holds a leading 30.8% market share, making it the global leader in the vertical folding screen phone market.

Lenovo Group is expected to continue driving the development of its mobile business. In the future, Lenovo will actively explore the potential of combining large action models (LAMs) with motoai. It will also strengthen its collaboration with retailers and operators through a combination of online and offline channels to ensure the widespread availability of its products, further enhance the brand influence of Motorola, and bring users even more products and services that exceed expectations.