Good morning and good evening. Welcome to Lenovo's Q2 earnings announcement webcast. This is Gary Ng, VP of investor relations at Lenovo. Today, I am pleased to have our Chairman and CEO, Mr. Yang Yuanqing, and our CFO, Mr. Wong Wai Ming, with us. We will first start with our presentation. After that, we will take your questions. Now let me turn it over to Yuanqing. Yuanqing, please.
Hello, everyone. We just completed a historic month, closing both the IBM System x and the Motorola acquisitions. But before I discuss that, I first want to share our strong second quarter results with you. This quarter, our revenue grew by 7% year-on-year, while our earnings increased almost 20% to $262 million. We continue to deliver on our commitment to improving profitability, thanks to strong performance across our entire businesses. In PCs, we gained more than two points of the share to reach our all-time high of nearly 20% and strengthened our position as a worldwide leader. In tablets, we gained almost one point of the share year-on-year, and are now number three worldwide. Actually, just a few weeks ago, when a company from Cupertino launched its new tablets, they talked about how they sold more tablets than any manufacturer sold PCs. But this is not a fair comparison.
You could say this is comparing apples and oranges. You could compare apples to apples. You could compare oranges to oranges. Or if you want to reflect the overall, you could compare the sum, apple plus oranges. A couple of years ago, when the same company talked about how tablets would cannibalize PCs, we predicted that tablet would actually be cannibalized by convertible PCs and large screen smartphones. So we doubled down on these two areas and set the target to win in both smartphone and separately broad PC, tablet plus PC. At the end of last fiscal year in May, we told you our next milestone was to become number one in broad PC in two years. Instead, we did it in two quarters. This is the latest IDC data.
You can see not only how the market has evolved and responded, but also how Lenovo has performed even better than planned. In smartphones, we remained number four in the world. But of course, once we add Motorola, we will be number three. Although we are facing some challenges in China, we still achieved a record sales volume because of our rapid expansion outside of China over the past two years. Today, our smartphones are selling in more than 45 countries. India and Southeast Asia, Russia and EMEA emerging markets, Latin America, were all our stars. Respectively, their units grew about 120%, 400% and 150%. Overall, a third of our smartphone revenue comes from outside of China, more than doubled from a year ago. We also continue to drive growth in our enterprise business, where volume increased by 35% year-on-year.
Finally, our ecosystem business also continued to grow, as daily downloads are now over 30 million. Our strong results show that our formula for success, clear strategy, innovative products, operational excellence, and a diverse team global culture continues to work. We have proven our unique ability to balance innovation and efficiency across all our business groups. Now, we will apply this strength to drive even greater growth. As we integrate both Motorola Mobility and System x, the successful closing of these two big deals gives Lenovo a strong position in two new areas: mobile and enterprise. Last year, we had the vision and the strategy to grow beyond PCs, but not all the pieces we needed. Now we have got all of them. With these two deals, we are now number three in both businesses. We are not satisfied.
We will replicate our success in PCs by outgrowing the market to challenge the top two. Mobile and enterprise are now our new growth engines, and over time, they will become our profit pool as well. In enterprise, we are focused on growing revenue and leveraging Lenovo's efficient supply chain to reduce costs. We remain very confident that we can build our $5 billion enterprise business with profits higher than PCs in one year. For smartphones, it is the perfect time to close Moto. Over the years, we have owned in China. We actually have been in the top two for 10 quarters in a row. But now, the China market is not hyper-growing any longer. It has been saturated. If you want to win, you must find a new growth area. You must become a true global player. This is what we have now become with Motorola.
We will operate in all key markets, including mature markets, the U.S., Western Europe, and the emerging markets, India and Southeast Asia, Russia and EMEA emerging, Brazil, and the rest of Latin America. At the same time, we are still very committed to the China market to address changes there while still maintaining our advantage in traditional channels, including carrier market. We are building a new internet-based company to capture the new market opportunity there. Our execution, acquisitions, and new business initiatives will drive growth. We will also grow through innovation like we did when we created the Yoga notebooks and the tablets. We launched the latest generations last month. With these new star products, we will continue to lead in convertibles and drive growth in tablets.
We are adding even more innovative products, including the new Lenovo Vibe smartphones, System x server lines, and Moto's impressive new family of products, the new Moto X, Moto 360 watch, DROID, and stylish hinge Bluetooth devices. Our strong performance demonstrates our clear momentum. Now, the additions of Motorola and the System x teams allow us to compete and grow across all smart connected devices, infrastructure devices, and in the ecosystem space. Thank you, everyone. Now, let me turn this to our CFO, Wai ming. Wai ming, please.
Thank you, Yuanqing. I will take you through Lenovo's financial and operational performance in Q2. Next chart, please. We continue to grow in both sales and profit with margin expansion. Moreover, cash flow from our operations has also improved compared to the same quarter last year. We recorded growth in most of our key businesses and at the same time further improved our profitability. Group sales grew 7% year-on-year to around $10.5 billion. PC and other non-mobile device personal technology products related sales were up 10% year-on-year to around $8.8 billion. Our mobile device business, including phones and tablets, was down 6% year-on-year to $1.4 billion. Sales of other goods and services were $292 million, declining about 9% year-to-year. Gross profit for quarter two was about $1.5 billion, up 15% year-on-year. Gross profit margin was 13.9% against 12.9% last year.
The increase was mainly attributed to the increased mix of higher margin PC products and a shift in geographic mix. Operating expenses increased by 11% to around $1.1 billion. The increase was primarily driven by the one-off M&A expenses related to System x and Moto transactions. Hence, the E/R ratio increased from 10% last year to 10.4% in quarter two. Operating profit in quarter two was $365 million, up 29% year-on-year. We recorded non-operating expenses of $36 million, which included the interest expenses of $18.1 million accrued for the $1.5 billion USD five-year notes we issued in early May. Profit for the period was $272 million, up 27%. Profit attributable to equity holders was $262 million, up 19% year-on-year. The difference between the two profit lines was due to our joint venture partners' sharing of gain in relation to Compal joint venture versus losses recorded last year.
Basic EPS improved to $0.0252 from $0.0212 last year. The board of directors in today's meeting declared an interim dividend of six Hong Kong cents, representing the same level of interim dividend paid last year. Despite the additional charges arising from the amortization of intangible assets of the two acquisitions, we contemplate to maintain our level of dividend payments. Next chart, please. Our balance sheet remains strong. Non-current asset was about $5.2 billion, and current assets were about $16.4 billion as of September 30, 2014. The increase of current assets were attributed to the increase in receivables, which is largely in line with our business growth. We had net current assets of around $1.6 billion at the end of September. The non-current liabilities were at around $3.8 billion. Let's go through the cash and working capital in the next chart. Our cash position remained very healthy.
As of end of September, we had net cash of around $3.2 billion. The quarter-on-quarter decrease of our bank deposits and cash was mainly due to payment of final dividend for fiscal year 2014 in our Q2. We continued to do well in managing our working capital. For quarter two, inventory days were 30, up two days against last year, due to our continuous expansion into consumer business in the emerging market and the ramp-up of our new in-house manufacturing. Receivable days were 34 days, which remained flat year-on-year. Payable days were 69 days, increasing by four days against last year. As a result, the cash conversion cycle for the quarter was at negative five days, again, negative three days last year. The slight quarter-on-quarter change is largely due to the strong growth of our consumer business.
We have recorded net cash generated from operations of $218 million in quarter two. Again, net cash outflow of $189 million the same quarter last year. The year-on-year and quarter-on-quarter changes are mainly due to changes in net working capital and relevant foreign exchange impacts. Our cash flow from operation remain healthy to continue to drive our future growth. Next chart, please. Our geographic exposure is even more balanced to support our future sustainable growth. China. Despite a strong performance from our PC business, which recorded a 6% year-to-year increase of our revenue against a market shipment decline of 3%, the total revenue from China was down 2% year-on-year, primarily driven by a decline of non-PC business. Despite the challenging market conditions, we continued to protect our profit pool and our China overall margin further improved by 0.5 points year-on-year to 5.8%.
We recorded a market share of 37%, and we further strengthened our number one position in China PC markets. As a result, our China PC operating margin improved by 0.02 points year-on-year to 7%. Revenue of non-PC business consists of smartphone and tablets were down. This was attributed to the following three factors. One, we have more shipments towards the end of the quarter, partly due to the launching of two new products, Vibe X2 and S90, in late September, as well as preparing for a better business in Golden Week in October. These shipments would not be recorded as Q2 revenue as a result of our accounting policy on goods already shipped but not received by customers. Number two, during the quarter, our mix of sales in tier four to six cities increased as a result of our stronger partnership with carriers.
This result to a longer lead time between sell-in and sell-outs. Under our accounting policy, we do not recognize revenue when channel holds more than a reasonable level of inventory. The third factor, the average selling price declined in the quarter as a result of having a larger mix of lower price products in the tier four to six cities. Going forward, Lenovo new products like Vibe X2 and S90 were well received, and together with the relaunch of Moto brand products in China, we believe we can further drive sales momentum. Finally, to address the smartphone market challenges, we will continue to broaden our routes to market, developing online channels in addition to building the open market. Asia-Pacific. Revenue was up 3% year-on-year to about $1.6 billion in Asia-Pacific. Strong performance in ASEAN's PC market supported our overall improvement in the region.
We continue to see improvement in both turnover and profitability for most of the countries, both year-on-year and quarter-to-quarter. Our drive in smartphone, particularly in the ASEAN region, has continued to be encouraging. Our smartphone shipment has achieved 1.5 million units in the region. Our operating margin was up significantly by 2.7 percentage points to a record high level of 4.4%, driven by growth in scale for both PC and mobile device businesses. EMEA. Our performance in EMEA is outstanding. With record high market share and operating margin expansion, revenue grew 33% year-on-year to about $3 billion. Strong growth in emerging markets and the consumer business contributed to the strong growth in the region. Our mobile business, including smartphone and tablet businesses in EMEA, has also recorded strong growth momentum with our smartphone shipments reached 1.6 million units.
The overall EMEA operating margin was up significantly by 2.3 percentage points to 3.8% due to a scaling benefit from strong growth and expense control. Americas. Our North America business continued to perform well and outperformed the market with market share gain. Our operating profit increased almost by 45% year-on-year. However, our business in Latin America, primarily Brazil, continued to be impacted by the weakened markets driven by the local macroeconomic and political conditions, which dragged down our overall performance in the Americas. The new local management team has already taken actions to stabilize the business. The revenue of the Americas region was roughly flat year-on-year. Operating margin as a result, was down year-on-year. Excluding the impact from Brazil, Americas recorded an improvement of over 12% year-on-year in revenue and recorded a 4.1% PTI margin, which represent two percentage points gain year-on-year. Next chart, please.
We had market share in notebook at about 21%. Notebook unit shipments were up around 14%, growing at a 13-point premium to the market, and sales were up 9% year-on-year. Our desktop PC volume also achieved a record high market share at about 18%. Unit shipments and sales in our desktop business were up 6% and 11% respectively year-on-year. Our mobile device business continued to show strong performance. Despite the China market continued to be challenging, our smartphone expansion in markets outside China has also been strong. Shipments were up more than 2x year-on-year. Our non-China business now account for 20% of our smartphone shipment compared to only 9% a year ago. I explained earlier about the smartphone business in China that dragged down the sales revenue in short term in quarter two.
Our tablet shipments were up 31% year-on-year, and its performance in markets like EMEA was particularly impressive. Looking ahead, we are confident that our existing business will continue to outperform the market across our key products to drive profit growth with margin expansion. With the completion of our acquisition of the System x server business and Motorola Mobility, we will now focus on integration of the two transactions in the near term in order to build a solid foundation for our business. We believe these two transactions will sharpen our competitiveness in the mobile and enterprise business, which will become growth engines for the company over time in addition to our core PC businesses. We will continue to stay focused on our efficiency improvement initiatives to ensure profitable growth. We closed the two major transactions in October. The results of the two businesses will be included in our coming Q3.
Under HKFRS, out of the total consideration of $5.2 billion, approximately 50% will be classified as intangible assets, such as patent and technology, customer relations, trademarks, and others, which will have to be amortized over their estimated useful life. Currently, such amortization expenses are estimated to be approximately $250 million-$300 million per year, which will be recorded as an expense item. From Q3 onwards, we will provide additional disclosure on these items in order to help the market better understand about the company's underlying operational performance. Thank you. Now we can take your questions.
Thank you, Wai Ming. We now proceed to questions. We want to accommodate questions from as many people as possible, so please avoid multi-part questions and limit to just two questions at a time. Please state your name of company before your questions. All the Q&A will be in English only. Operator, will you please give us your instructions?
The first question comes from the line of Thompson Wu of Credit Suisse. Please ask your question.
Great. Thank you and good afternoon. Going back to the point Wen made about China smartphone dynamics in September quarter. Can you guys give us an update on how inventories and sell-through are trending through, I guess, the November month?
Thompson, it's Wai Ming. I think the sell-in or the sell-out is obviously as per plan. We have launched a new product in September, and we begin to sell. We see some momentum building that up. I think everything is according to plan.
Okay, great. Just to follow up quickly on the PC side, I think in your prepared remarks, you said that you are seeing signs of stabilization in particularly the Chinese PC market, and I believe your PC shipments are actually up year-over-year for the first time this past quarter. Can you just talk a little bit more about the trends you are seeing in the China market and maybe globally as well? Thank you.
You want me?
Yes. You can go.
Thompson, yes. We definitely see that, I think the trend is slow stabilization. I think that definitely another sign, which is even more obvious, is we definitely see the industry getting more consolidation. We begin to see that some probably smaller players are announcing I think the exit of their business. Therefore, it will really provide a lot of good opportunities, I think, for the key players, especially the player with a leading position. We are still positive on the PC business, especially when you see our execution. Even as you said, in difficult markets, we continue to increase market share as well as increasing profitability, i.e., profit margin.
Yes. Regarding the China market, definitely, the overall market has still declined a little bit. But we actually grew the revenue year-over-year for the first time in six quarters. We definitely believe we have become stronger in this industry. This industry will further consolidate. We are definitely leading the trend. Although we have already reached the 10% share, I don't think we should stop there. We definitely have a good opportunity to further grow share to 25% or 30% even in the future. Because in China now, we have 37% share, but outside China, we have much less share. Actually, it's a good story. We grew share from 6%, 7% to today's 20% over two years. We grew our consumer business from nothing to today's more than 20% share.
Sure.
That's definitely a good story. We want to replicate this kind of successful stories in more countries, regions, geographies. Leveraging the industry consolidation.
Okay, great. Thank you for your time.
Have a good afternoon.
Thank you.
The next question comes from the line of Grace Chen of Morgan Stanley. Please ask your question.
Thank you. Thank you for taking my question. My question is about the server, regarding the IBM x86 server deal. On the positive side, we believe that this deal can help you get market share, especially in China. However, IBM continues to lose market share in servers globally and also in China because it is facing competition from other local server Chinese brands. In the previous presentation, I think you mentioned you target to build server business with higher margins than PC in one year after the closure of the IBM deal. I am wondering, do you still maintain this target? Because I understand IBM x86 server business seems to be still running a little bit lost or breaking even. Do you feel like this margin target is a bit stretched given the intensified competition in servers both in the U.S. and in China? Thank you.
Yes, it is still our target. We will build a $5 billion business with better than PC margin. Definitely we understand it is not easy, but we stay confident we can deliver that. For the next phase, we definitely are focusing on stabilizing the business and growing the business. All Lenovo resources will help this System x team to reach their target. That is the first part. The second is, we definitely will share Lenovo more efficient operational platform with System x team to help them to reduce the material cost, reduce the supply chain cost, to significantly reduce the expense to revenue, so that we can have the good share to compete in the market. That is why we are still confident. We can deliver a $5 billion business with better than PC margin in one year. That is the answer. Thank you.
Okay. Thank you. Maybe just let me add one follow-up question. In the China market, we see there are several local server Chinese brands. They are very aggressive in pricing, and they grew very fast. I know Lenovo has a higher margin target. How would you view the competition from these local server Chinese brands? Thank you.
In the past, IBM or System x was viewed as a foreign brand in China. It's not that easy to do business with state-owned enterprise and the government. But in the future, this is not a problem any longer. Also, in the past, Lenovo, we don't have the full range of the product portfolio. It's not that easy for us, for Lenovo to gain more enterprise customers as well. But now the situation has changed completely. With the combination of System x as a product portfolio and Lenovo ThinkServer product portfolio, we have the full range of the products. Also, we can do business with any Chinese customers. That's different. I don't think in the future it's a problem. We will become more aggressive in the China market to fight back the market share and the customers.
Okay. Thank you.
Thank you.
If I may, I could-
Great. So limit to two questions please then. Next question, please.
Thank you. The next question comes from the line of Arthur Hsieh of UBS. Please ask your question.
Hi. Thank you for taking my question. I have a question on this handset business. I think in the September quarter, you have increased your overseas exposure. I think in the past, when that happened, actually, it is helpful to the overall profitability. So it seems like it did not really help much in this September quarter. Could you let us know what happened there? Also along the line, on the handset business, I think Motorola was able to reduce the loss for two quarters, but in its December quarter results, it seems like the loss has expanded. So how should we look at the profitability, after the inclusion of the Motorola business, for the coming quarter? That is my question.
Yeah. So, Arthur, this is Wai Ming. Let's start with the easier one which is Motorola. We definitely see the Motorola momentum continue. I think since we announced the transaction early of the year, I think their revenue obviously went up, depending on which quarter, probably nearly double. I think every quarter, we definitely feel very confident that will continue after our ownership. Now, when you refer Motorola reporting a bigger losses, I think you have to read the account very carefully because the number was disclosed in the Google set of financial statements under discontinued businesses. And in which, apart from the operational performances, I think it also includes costs such as restructuring, so on and so forth.
I think without the benefit of seeing how Google prepares the numbers, but based on our understanding, we definitely see that Motorola continue to improve, especially when the top line been actually been improving in a very healthy manner. That's number one. Number two, you asked about our overseas business. Yes, our overseas business definitely as a percentage to the overall actually increased. And in fact, we only start our smartphone business outside China a few quarters ago. Nevertheless, it's still relatively small as a percentage to the turnover. I think, as you may know, after achieving a significant market share, we really are striking for a balance between top line and bottom line growth. And although the overseas business actually been increasing, from a volume perspective, very healthy year-to-year, I think it does not necessarily have a material impact on the bottom line.
But going forward, especially, when we'll be able to build up the scale of our phone in the overseas markets, you will begin to see the improvement in a material way financially. Just exactly the same way that we start our consumer business outside China a few years ago. In the beginning of the year, I think we are very aggressive and active in building up the volume. And once we've reached a certain volume to scale, then we actually have the scale of benefit, and then you can see the benefit that bring to the whole group. So have I answered all your three questions, Arthur?
Well. So can I be a bit more clear in terms of the loss actually from what you can see, coming from Motorola, for the September quarter number, actually it's probably smaller than what we have seen from the Google results. And going to December quarter, that number is possibly going to be even smaller.
I think that I can actually, well, without commenting on the actual numbers, I think that we will continue to see the improvement of the Motorola results. As I said, since we announced the deal in January, I think the January quarter, the April quarter, I think the June quarter, the July quarter, and definitely we continue to see the trend is actually improving. So that's the best I can give you by way of guidance. I think it will not be possible, Arthur, as you can imagine, that I give you the exact numbers.
Sure. Yeah. Appreciate it.
Thank you. The next question comes from the line of Gokul Hariharan of J.P. Morgan. Please ask your question.
Yeah. Hi. Thanks for taking my question. First, just to follow up on Motorola, just building on Arthur's question as well. When you guys announced the deal, at that point, you had made a remark that Motorola gross margins were running at close to 20% for their flagship products. Is that kind of the run rate gross margins they are still running at? Is that something that we should be thinking about, in terms of the profitability of that business even now, given that the product mix has also changed quite a bit over the last six to nine months? Secondly, I also wanted to understand, I think previously, you guys have talked about four to six quarters of a turnaround plan, reaching breakeven in four to six quarters. Could you give a little bit more detail on how that is likely to be achieved?
Is it primarily going to come through revenue growth, given that the competitive dynamics in the smartphone market seems to be becoming a bit tougher? Thanks.
Google, I think to answer your questions, I think the 20% you mentioned that was primarily reflected in the financials of Motorola, I think, last year. If you look at it, I think last year they actually really launched Moto X for six months and primarily Moto G, I think for two months. As you know, Moto G has been a fantastic success, I think, in the market. I think it's actually hit a very high market share, I think in Brazil, and I know that in the U.S. they are actually hitting even 10% market share, I think, in the last quarter. So they've also been successful I think in countries like India.
Definitely, I think the margin of Moto G and the margin of the previous years of 20% probably will have a difference, but not significant difference, because I think when you really look at the overall P&L, I think when you launch a higher premium product, you obviously will come along with higher advertising and marketing costs. When you actually launch Moto G, which I think the market immediately see the value because of the quality of the product, I think there's the better user experience. Although the gross margin come down a little bit, but the net is actually not necessarily that different. Overall, I think the key for us is really looking at as I said, the broader top line, as well as the control of the expenses, and that's really the way to lead to a breakeven.
I think we continue to believe and to execute that. I think the Motorola business will become breakeven in four to six quarters, I think, really from two area. I think one is the continuing growth in the top line, as well as controlling expenses. More important is, I think the synergy that derive after the ownership, because we obviously will have a much bigger overall smartphone business, and there will be improvement in terms of material cost, as well as I think the back end of the operation with a very efficient operating platform of Lenovo, as reflected in our legacy business. You definitely can see that we'll be able to, I think, improve the gross profits.
And I think if you want to be very specific, without necessarily increase the expenses, as a result of that, I think it will drive to a breakeven, and the plan remain, I think with the sort of four to six quarters. I do not know whether Yuanq ing want to add any comments on the four to six quarters.
Yes, definitely we are still committed to that. We are very confident we can deliver that. So although the gross margin probably is not exactly 20%, could be a little bit less because they sell Moto G than the premier Moto X product. But you can see the expense to revenue change over the past couple of quarters. So actually, one year ago, when we did the due diligence, I thought the E/R ratio was more than 40%, but last quarter it was just 23%. It was just a 23. So definitely. So, with the synergy, with the more efficient operational platform in Lenovo. So we are very confident. So, from one aspect, we can help them to improve the GP margin. From the other side, we can help to reduce the E/R ratio through further growing.
We are definitely confident to turn around the business in four to six quarters.
Google, just add one more point on, I think, why we are so confident, because we definitely see the trend of the smartphone market really moving to the direction as I described below. I think the moving from the premium to the main market, become more obvious. Are we still there?
Hi, Gokul?
Yeah, I'm still there. Yep.
Oh, okay.
The line is a little bit. I think that definitely there are trends moving from premium to the main line market, the main price market, the main market. Motorola, in fact, if you really look at their portfolio, they are particular successful, as I said, Moto G, and really been winning market, especially winning in countries where we actually see hyper-growth, such as in the Latin America, such as in India.
While on the other hand, if you really look at the mature market, or China market is still growing, but does not have the hyper-growth, and probably a lot more competitive. But in other markets, that is definitely our experience of our Lenovo phone, been extremely, I think, positive. Motorola is an extremely nice addition to the Lenovo family that we are able to capture the opportunities. I think definitely in the next few quarters, we see very positive. Therefore, on the top-line basis, we remain very confident that they will continue to outgrow the market in a big way. Again, if you really look at the last three, four quarters, they have been literally beating, I think on a year-to-year basis, nearly 100%.
Well, not necessarily 100% forever, but we definitely will see a very high, I think, year-to-year increase, and coupled with our ability to have an efficient operation. I think we are very confident to achieve, I think what Yuanqing just said, to achieve a breakeven in four to six quarters.
Okay, great. Thanks.
All right. Thanks, Gokul. Due to our time constraint, we will take the last question.
Thank you. The last question comes from the line of Leping Huang of Nomura International. Please ask your question.
Thank you to take my question. Just one question about the China smartphone. We see quite a big volume, the revenue decline last quarter. Now Moto coming in. What do you see your strategy in China smartphone market? Do you target certain market share or maintain a number two position together with the Moto and the Lenovo brand? Or basically, you are more focused on the profitability? We know that your competitors are quite aggressive in terms of gaining market share these days. Thank you.
We definitely are still committed to the China market. We are definitely confident that we will keep in the top two. We shouldn't be satisfied with just the top two. We still want to become the number one in the market. We have worked out our strategy. We will further protect our strongholds in the carrier market. Meanwhile, we need to be more aggressive in the open market and in the internet model. That's why last month we announced that we will build a new company. A standalone independent company to drive the internet model business. That would help us to gain this leadership position. Meanwhile, we have a very clear strategy. Motorola will come back to China again. We are working on that. Both Moto team and Lenovo MBG team are very excited about that.
Motorola is still a very respected brand in China. Why they left China, I think that's because of Google's strategy. Now many Chinese still remember this brand, still respect this brand. The carrier, they still view this brand as a premier brand. Actually, although in China, there are a lot of domestic players, but they are just focusing on the mid to low-end price band. In the high price band, now, there are only two brands. Apple and Samsung. Even for the carriers, for the public, they like to have the third brand to address from mainstream to the high-end price band. We believe Motorola would have the chance to play this role. That's about China. But I wish you could understand Lenovo's overall mobile strategy. China is important, but it's not the only.
Actually, in the future, we probably will be more focusing on outside China rather than just China. You can see our results in the rest of the world. We grow our volume in India and Asia by 120%. We grow in Russia and the rest of EMEA emerging markets by 400%. We grow volume in Latin America by 150% last quarter. That's a pull. Although we still cannot make a lot of money from those markets, just like our PC. Once we can reach a certain level of the market share, we have a good chance to make money. Here, I want to emphasize our PC profit improvement. Actually, last quarter, you could see across the world, across geographies, we significantly improved our profitability in the PC. In EMEA, we grew by $83 million.
In North America, we grew by $26 million. In Asia Pacific, we grew by close to $40 million. In China, we grew by $20 million. The only country we lost money is Brazil. Why we can deliver these results? That's because our market share expansion has reached to a certain level. Now that's the time to harvest, to get the return. Like in EMEA, our consumer business grew up from nothing to today's 20% share. Even one year ago, we still lost money in the consumer space in EMEA. But now we can make a lot of money from that as well. I believe we will replicate our successful story in the mobile space as well in the future. Now we are with the Motorola deal closing, we have very different sort of plans. We can play globally.
In North America, West Europe, in India, Russia, Southeast Asia, Middle East and Africa, Latin America, everywhere.
Thank you, Yang Yuanqing. Thank you, Wong Wai Ming . Thank you, everybody, for your participation in today's call. If you have any further questions, please feel free to contact the IR team. The webcast we play and the conference call we play will be available in the next couple of hours. Thank you again for joining us today.