Lenovo’s Sharp Knife Is Behind Those Meaty Profits

There’s no question the ThinkPad maker’s 19 percent increase in sales played a large role, and it’s an impressive figure given the challenges in PCs and in mobile, where the Chinese company owns the former Motorola Mobility unit. Had operating expenses tracked the same rate as a year ago, operating income would have been closer to $1 million, instead of the $180 million Lenovo posted. Lenovo points out in its investor presentation that $105 million in operating expenses was cut from the mobile unit in the June quarter compared with the previous year.