Lenovo has posted its financial results for the second quarter of 2016, revealing that its year-over-year revenue dropped by 8% compared to the same period last year. However, compared to the previous quarter profits are up 12% and the company believes its mobile division shows promise thanks to restructuring and high demand for the Moto Z and its mods.
So what does that look like in numbers? Lenovo managed to rake in $11.2 billion in revenue this quarter, but that’s not all bad news. Despite being down, the company managed a net income of $157 million for the quarter, compared to a $714 million loss that the company posted in the same quarter of last year. Lenovo says cost saving and restructuring of its mobile division are responsible for closing that gap.
The company saw a 0.4% increase in sales this quarter, with 361 million handsets shipped compared to 359 million shipped in the same quarter of 2015. Lenovo has been struggling to sustain profitability after purchasing Motorola from Google, but it looks like the company’s acquisition is paying off as the Moto Z is credited with helping the company increase production.
The report says that Lenovo expects to see the Moto Z move at least 3 million units within its first 12 months on sale, which has led to production increases up to 60,000 units a month. In fact, Lenovo compared the demand for the Moto Z to that of the iPhone, though it didn’t specify which model in its comparison. The Moto Z shipped 1.06 million units in its first three months, with the unspecified iPhone model at 1.12 million.