Feeds

PC sales in the toilet? Excuse Lenovo while it gut laughs at you

Our profits are up 34%, says tech titan, how's your biz?

Choosing a cloud hosting partner with confidence

Chinese PC sales juggernaut Lenovo rolled into town with another set of double-digit growth numbers for its fiscal Q3 as rivals continue to scratch around for what they can get.

The firm hasn't yet toppled HP from the top of the global PC market but sales were up 12 per cent to $9.4bn and profit rose 34 per cent to $205m for the quarter ended 31 December.

Still not a great return for the size of the turnover, but this is a commodity market and it's worth pointing this was the thirteenth consecutive quarter Lenovo has outgrown the market.

PC shipments worldwide were up nearly 8 per cent in the quarter and the smart mobe, slablet and smart TV biz - grouped by Lenovo under "PC Plus kit" - grew 77 per cent.

The "Protect and Attack" strategy developed four years ago underpinned its improved fortunes, said Lenovo chairman and CEO Yang Yuanqing.

This strategy is designed to safeguard Lenovo's dominant position in China and the global commercial PC sector, and help it make aggressive moves in the emerging markets; the global consumer space - where it has trailed the pack; and PC Plus.

Lenovo estimated that the attack strategy had accounted for half of its revenues up from around one-third back in 2009.

The Chinese biz this month restructured as the Lenovo Business Group, which will flog commodity gear, and the Think Business Group, which will dangle premium kit in front of Apple fanbois.

This led to some speculation that the IdeaPad brand will be phased out over time, though a spokeswoman at Lenovo told us "we have not announced any changes to our branding strategy as part of there business realignment".

Geographically, Lenovo turned over $4.1bn of sales in China (43 per cent of global sales), up 17 per cent year-on-year, and sales in its Asia Pacific and Latin America regions were up 11.3 per cent to $1.7bn.

EMEA sales grew 17 per cent to $2.3bn and revenues achieved in North America grew 8 per cent to $1.3bn.

Compare this to HP, which saw sales in its Personal Systems division for fiscal 2012 ended October drop 10 per cent on the previous year to $35.6bn.

Things seemed to be moving in the right direction for HP in fiscal Q4, but sales were up by just 1 per cent to $8.7bn.

Texan PC baron Dell saw its mobile PC revenues slump by a fifth in its fiscal Q3 to $3.52bn as desktop sales fell 8 per cent to $3.13bn.

Meanwhile, Gartner's Q4 prelim data for kit shipped into the channel showed HP declined 0.5 per cent but boosted its market share to 16.2 per cent as its rate of decline was slower than the market average.

Breathing down its neck, Lenovo grew 8.2 per cent to take 15.5 per cent market share up from 13.6 a year earlier. Dell sales dropped by 20.9 per cent and its share slipped from 12.2 per cent to 10.2 per cent.

Asus was the only other vendor in the top five to post growth: 5.4 per cent to be precise. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
French 'terror law' declares WAR on the INTERNET itself, say digi-rights folks
Liberté, Égalité, Fraternité: Two out of three ain't bad
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.