Lenovo has announced its financial results for the year ending 31 March 2016. The company is facing a slowdown in the global PC market, although it says that it will attack new areas of growth to strengthen revenue performance. At the same time, it admits that the integration of Motorola into its Mobile Business Group did not meet expectations.
The company reported a full year revenue of $44.9 billion, down 3-percent from the previous year. Despite the small dip in revenue, net losses amounted to $128 million (about RM520 million).
Lenovo’s market share in the PC market actually increased to 21-percent during this time, showing that all computer manufacturers are beginning to feel the pinch. The enterprise market also reported positive sales growth, with the group reporting a 73-percent increase in profit over the past year. Mobile devices also achieved its target of breaking even on operational expenses within four to six months.
The Asia Pacific region performed reasonably well for the company. Lenovo maintained its position as the top PC maker in the region for the entire fiscal year, while shipments of smartphones increased by 44-percent in the fourth quarter. Still, Asia Pacific only accounted for 17-percent of Lenovo’s global revenue.
As usual, the Americas contributed the largest portion of Lenovo sales. The market accounted for 30-percent of worldwide revenue, while the company admits that the delayed launch of the Moto G in the market hurt its earnings.