How Lenovo enterprise business performed in Q3

Yuanqing Yang of Lenovo
Lenovo today said its sales in the Enterprise Business Group rose 8 percent to $1.3 billion in Q3 fiscal 2016.

Lenovo’s Enterprise Business Group includes servers, storage, software and services sold under both the ThinkServer and System x brands.

System x has generated sales of approximately $1 billion, said Lenovo.

Lenovo said the overall growth was driven by hyperscale wins in China. EBG stabilized its data center business, while tapping cloud, hyperscale and hyperconverged opportunities. Lenovo aims to achieve $5 billion from the Enterprise business in 2015-16 fiscal year.

Yuanqing Yang, chairman and CEO of Lenovo, said: “In Enterprise business, we will leverage leading technologies and strategic partnerships to drive profitable growth.”

Lenovo posted net income of $300 million (+19 percent) on revenue of $12.9 billion (-8 percent) in its third fiscal quarter ended December 31, 2015.

“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 to accelerate our growth in emerging markets, breakthrough in mature markets with innovative products and premium brands,” said Yuanqing Yang, chairman and CEO of Lenovo.

Sales at Lenovo PC Group – including PCs and Windows tablets – fell 12 percent to $8 billion.

Lenovo achieved 21.6 percent market share by shipping 15.4 million PCs in the quarter. Lenovo has 19.7 percent share in consumer segment. The company is looking at Windows 10 to grow market share to 30 percent worldwide PC market share.

Lenovo’s Mobile Business Group sales dipped 4 percent to $3.2 billion. Motorola contributed $2 billion to Lenovo’s mobile revenues.

Smartphone volume at Lenovo declined 18.1 percent to 20.2 million units.

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