Previous reports showed four straight quarters of declines in global smartphone shipments. IDC reported that global smartphone shipments fell 8.7 percent year on year in the second quarter of 2022, dropping to 286 million units in the quarter, 3.5 percent less than expected. This was attributed to the uncertainty of the global economy and weak demand. However, Lenovo Group still achieved bucking the trend of growth despite the unfavorable macro environment.
Q1 results show that Lenovo Group achieved a revenue of nearly 112 billion yuan, a slight increase; Net profit of 3.4 billion yuan, an increase of 11% year-on-year, for nine consecutive quarters to achieve both revenue and profit growth.At the same time, IDG non-PC segment corresponding to smart phones showed strong performance. Smart phone products continued to focus on the core market, product upgrades and iterations, and achieved 9 consecutive quarters of profit. Q1 contribution to the business increased to 22%, revenue increased by 12%, especially smart phone products, achieved a high growth of 21%, not only in the traditional advantages of North America and Latin America, maintained growth in Europe and Asia Pacific markets also achieved a climb.
< /p>It is worth noting that in addition to the good performance of the smart phone business, ISG and SSG also achieved profitability growth, and the non-PC business accounted for 37%, which together became the new growth engine of Lenovo Group. Lenovo Group has reached the milestone of "second growth curve".
