Feeds

Lenovo cracks its first ever $10bn quarter

PC sales still bring in half the loot as smartmobe sales surge 300 per cent

  • alert
  • submit to reddit

Website security in corporate America

Lenovo sold a record-breaking 32.6 million pieces of kit in the last quarter, passing the $US10 billion (£6bn) revenue milestone for the first time.

The PC giant’s third fiscal quarter ending 31 December saw revenue up 15 per cent year-on-year to $10.8bn (£6.5) and profits up even more, growing 30 per cent to $321m (£193m).

The results helped Lenovo stay out in front in the global PC stakes with its highest ever quarterly market share of 18.5 per cent, according to IDC’s latest stats.

The firm said it sold 15.3m PCs, 13.9m smartphones and 3.4m tablets, with smartmobe sales growing 47 per cent year-on-year and tablets at a rapid 300 per cent.

Laptops remained Lenovo’s biggest cash cow for the quarter, contributing an impressive 50 per cent of revenue ($5.4bn, £3.3bn) despite shipments dropping 6.3 per cent year-on-year.

Cock-a-hoop CEO Yang Yuanqing said the record-breaking results were a vindication of the firm’s PC Plus strategy – which has seen it expand out of its core heritage in PCs to smartphones, tablets and the like.

That strategy is likely to get a further boost with the pending acquisitions of Motorola Mobility and IBM’s x86 server business. Although they will cost Lenovo a combined $5.2bn (£3.1bn), the past quarter has shown that the Chinese hardware giant can easily afford it and analyst reaction has generally been positive.

“The Motorola and IBM server acquisitions that we just announced are a perfect fit with our PC Plus strategy,” Yang said in a canned statement.

“While our top priority now is full participation in the regulatory approvals process, I am confident that from day one after closing, these businesses will quickly begin contributing to our performance and develop into pillars for long-term, sustainable growth.”

Lenovo remains China’s best known and most successful brand name in tech – although much to the frustration of Beijing it doesn’t have much competition.

Its revenue from the Middle Kingdom remained a sizeable but little-changed 37 per cent of its global total, but it was elsewhere in APAC (+22 per cent), EMEA (+25 per cent) and the Americas (+36 per cent) where growth really spurted. ®

Reducing the cost and complexity of web vulnerability management

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
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
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.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.