Lenovo alone accounts for 65% of the foldable mobile phone market in the United States.
Recently, Lenovo Group announced its performance for the first quarter of the 2024/25 fiscal year ending June 30, 2024, which greatly exceeded Bloomberg's expectations in terms of revenue and net income. Among them, several segmented business areas performed extremely well. In the media communication meeting, Yang Yuanqing, Chairman and CEO of Lenovo Group, revealed that Lenovo (including Motorola) smartphones achieved double-digit growth in North America, Asia Pacific, and Europe region last quarter. Among them, the sales revenue of high-end products increased by 142% year-on-year.
Yang Yuanqing said he hopes the mobile phone business will first achieve rapid growth outside of China, becoming one of the leading brands in the market, especially in developed countries' markets, and then plan for growth in China and regain mainstream status.
Last quarter, Lenovo's mobile phone business grew by 30% in both overall sales and revenue, showing strong profitability. Lenovo used the combination of 'defense and attack' to maintain its leading position in North America and Latin America. Now it is consolidating these two markets, with close to 20% market share in Latin America and over 10% market share in North America last quarter, firmly ranking in the top three. 'Attack' means more aggressively expanding in Europe and Asia-Pacific, especially India, Japan, and Australia, which have achieved high-speed growth. Asia-Pacific has even achieved triple-digit growth, while Europe has reached 35% growth. Yang Yuanqing said, 'We believe this trend can continue.'
In addition to regional strategy, Lenovo's product strategy is also very clear - pushing towards the high-end market. In the US foldable phone market, Lenovo Motorola accounts for as much as 65% market share, with Samsung lagging far behind in second place. 'The sales of the previous generation of models were already higher than the sales of all previous models combined, and our latest models are even stronger than the previous generation,' said Yang Yuanqing. 'In addition, the proportion of straight edge screens is also increasing. In the past, Moto G and Moto E series targeted the low to mid-range markets. Now we are making efforts to the high-end market, so this proportion is increasing. These are the main driving forces for growth. The AI phone in the future is also our opportunity, and we will also increase the added value of mobile phone services. We will work with strategic partners to promote the rapid development of this direction.'
In addition to the Asia-Pacific, the United States, and Europe, when talking about Lenovo's introduction of the Saudi Alat 2 billion US dollar strategic investment, Yang Yuanqing also has high expectations for the mobile phone market in the Middle East. 'For smartphones, Saudi Alat will help us improve Motorola's local government and other business (department) market share.'