Chinese PC maker Lenovo announced the results for its third fiscal quarter that ended on Decebmer 31 2015, and the results show a drop in revenue as global PC and smartphone demand weakens.
The company said quarterly revenue was $12.9 billion (£8.96), representing an 8 per cent drop compared to the year earlier. Reported pre-tax income was $320 million (£222m), up 17 per cent, and net income was $300 million ($208m), with both figures exceeding analyst's estimates.
As the PC market shrinks and gets more saturated, PC makers look for a way out. Lenovo found it in Alphabet's Motorola mobile industry, and IBM's low-end server business, both of which were acquired by Lenovo recently.
Through the realignment and savings, Lenovo was able to transform into, and maintain a healthy business.
"Last quarter, although we were impacted by the global macro-economic slowdown, currency fluctuations in key markets, and PC market decline, Lenovo still achieved record high profit and delivered on our commitment to turn around the Mobile business," says Yuanqing Yang, chairman and CEO of Lenovo.
"Next, in PCs, we will leverage the consolidation trend, commercial PC replacement, and opportunities in innovative product categories to drive growth. In Mobile, we will build scale and efficiency to accelerate our growth in emerging markets, breakthrough in mature markets with innovative products and premium brands, and expand in the open market in China with a stronger product portfolio. And finally, in Enterprise, we will leverage leading technologies and strategic partnerships to drive profitable growth."