Keeping a closer look at our mobile computing line of business, Q2 was truly an exceptional quarter. Mobile computing revenue of $89.9 million represents 36% year-over-year growth compared to the second quarter of 2011 and gross margin was a very healthy 28.1%. AirCard and PC OEM sales each contributed significantly to the strong results.
Revenue from our AirCard mobile broadband devices was up 32% year over year, driven by new product launches such as our unique Tri-Fi Hotspot at Sprint, new channel launches such as Virgin Mobile, and continued solid demand for our 4G AirCard products from key operator customers including AT&T, Sprint, Telstra, Rogers and DNA.
Revenue from the sale of embedded modules to PC OEM customers continue to grow at a strong pace in Q2 and was up 50% on a year-over-year basis. During the quarter we experienced solid contribution from a broad range of PC OEM customers including HP, Fujitsu, Lenovo and Panasonic. Revenue contribution from Japan was once again exceptionally strong as we continue to benefit from large rollouts of LTE-enabled notebooks with enterprise customers in Japan.
We also expanded our PC OEM product portfolio during Q2. In June we announced the introduction of the world's thinnest 4G LTE embedded module, the AirPrime EM7700. At only 2.5 mm thick, the EM7700 is designed specifically for us in ultra-portable notebooks, Win8 tablets, and other devices with thinness as a critical design criteria. In Q2 we secured new design wins for the EM7700 as well as other embedded module products with tier 1 PC OEMs for platforms that we expect to launch later this year and into 2013.Looking forward, we're optimistic about the continued growth prospects in our mobile computing business based on the strength of our channel position, our robust 4G product portfolio and pipeline, expanding LTE network deployments, and new pricing plans from operators. Read the rest of this transcript for free on seekingalpha.com
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