Feeds

PC rivals weep while Lenovo dazzles with Q2 box-shifting numbers

Chinese dragon is 'renting' market share by low-balling prices, sniffs rival

The next step in data security

If the HP folks in Palo Alto were hoping to see a chink in Lenovo's armour on its latest quarterly financials they will be sorely disappointed - a double-digit growth fest was banked by the Chinese dragon AGAIN today.

The company has its portfolio limitations but it made the most of the sectors in which it operates to push up year-on-year revenues 13 per cent to $9.8bn, with pre-tax and net profit up 30 and 36 per cent respectively to $265m and $220m.

It shipped 29 million devices in the quarter ended 30 September, which equates to: 315,217 devices a day; 13,134 an hour; 218 devices a minute; and 3.6 devices a second.

In PCs, Lenovo said market doldrums were lifting, but despite this laptop shipments declined 12 per cent. The value of those sales was however eight per cent higher than a year ago at $5bn, or 51 per cent of total group turnover

The opposite was true of desktops, where unit sales edged up one per cent but revenues decreased three per cent to $2.7bn.

Lenovo may be the largest PC maker on the planet - it is number one in five of the top largest PC consuming countries - but it was slabs and smartphone that fuelled most of the sales hike in the quarter.

The Mobile Internet Digital Home which houses smartphone and tablets was up 106 per cent to $1.5bn as shipments expanded 78 per cent.

Some 2.3 million tabs were flogged, up 4.2 times year over year with 77 per cent sales "driven" outside China. Smartphone shipments were up 78 per cent but Lenovo did not confirm the unit or revenue number.

An ebullient Lenovo CEO Yang Yuanqing, boasted "not only" was his business perched at the summit of the PC industry but it had become the world's fourth biggest shifter of phones and slabs of the fondling variety.

And he reckons the dark clouds are parting above the traditional computing markets, voicing some optimism.

“Benefiting from corporate refresh and China market improvement, the PC market is recovering, and tablet growth continues shifting to mainstream and entry-level segments, as well as emerging markets," said Yanqing.

Lenovo may be moving beyond just PCs but it still lags established enterprise rivals, including those watchful peeps at HP, whose portfolio is much wider.

This was a point magnified by a senior HP exec at last month's Canalys Channels Forum in Barcelona.

Jos Brenkel, global senior veep of sales for Printers and Personal Systems (PPS), conceded Lenovo had "done well in their sphere" but accused the rival of "renting" market share by low-balling prices.

"What we've got that they don't have is sustainability in the corporate enterprise… I can sell a whole portfolio of products and I can leverage my whole sales force," he told El Chan.

HP brought on board new PPS chief Dion Weisler in the summer and Brenkel said he is taking a "more disciplined" approach to the cost base that will enable HP to "much more aggressive".

HP's PC PPS biz in fiscal Q3 ended 31 July swelled 10.8 per cent to $7.7bn and operating profits crashed nearly 44 per cent to $228m. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.