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

Boost IT visibility and business value

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. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.