Lenovo 2015 Annual Report Download - page 21

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2014/15 Annual Report Lenovo Group Limited
Mobile Business Group (MBG)
During the fiscal year under review, the Group’s mobile
business continued to deliver strong growth driven through
aggressive expansion in markets outside of China. The
Group’s worldwide smartphone shipments grew over 50
percent year-on-year to 76 million including two quarters
of Motorola, driven by aggressive business expansion
in emerging markets outside of China from Lenovo brand
products and strong growth of the Motorola brand products. Together
with Motorola, the Group’s total smartphone shipments from markets outside of
China represent 41 percent of worldwide shipments in the fiscal year under review,
which now makes Lenovo a truly global player that ranked number three worldwide.
Lenovo’s market share in the worldwide smartphone market continued to expand by
1.0 percentage points year-on-year to 5.7 percent during the period under review,
according to preliminary industry estimates.
On the tablet side, the Group’s tablet shipments increased 26 percent year-on-year,
a 24-point premium to the market, to 11.6 million unit shipments during the fiscal year
under review, according to preliminary industry estimates. The Group’s tablet shipments
outside of China continued to show strong growth, accounting for 87 percent of the
Group’s total shipments. The Group’s worldwide tablet market share increased by 1.0
percentage points year-on-year to 5.1 percent.
The total revenue from Mobile business including Motorola increased 71 percent year-on-year to US$9,142 million,
representing approximately 20 percent of the Group’s total revenue. Profitability of Motorola has been improving
since closing of the transaction in October last year. Nevertheless, the Mobile Business Group still recorded a loss
before taxation of US$370 million and a negative 4.0 percent pre-tax margin.
Enterprise Business Group (EBG)
The Group’s enterprise business that now includes System X has become number three worldwide, according to
preliminary industry estimates. During the year under review, the Think Server business continued to show strong
growth while the System X business showed signs of stabilization during the first two quarters of integration.
Revenue of the Enterprise business was US$2,628 million, including two quarters of System X contribution,
representing approximately 6 percent of the Group’s total revenue. The loss before taxation was US$121 million, and
its pre-tax margin was negative 4.6 percent.
Others
Apart from devices, the Group continued to build a foundation for its ecosystem business during the period under
review, helping to create a better user experience for Lenovo’s product users. The Group’s star applications,
including SHAREit and SECUREit apps, continued to show good customer traction. The Group now has one of the
world’s largest app stores with around 400 million users and 70 million monthly active users, an increase of 170
percent year-on-year.
Revenue from ecosystem, cloud services and other products such as consumer electronic businesses acquired in
previous acquisitions decreased 3 percent to US$1,180 million, representing approximately 2 percent of the Group’s
total revenue.
Moto X