Lenovo profits up 36 per cent as it aggressively attacks PC+

by Mark Tyson on 7 November 2013, 15:00

Tags: Lenovo

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Lenovo announced its quarterly results today and it beat expectations by posting a profits figure up by a sizeable 36 per cent. The results cover the July to September 2013 period. According to IDC Research Lenovo is the biggest PC maker in the world with a 17.3 per cent share of the market. The growth in revenue and profits is however said to come from its aggressive attack on the PC+ market – smartphones, tablets, servers and workstations.

In the quarterly period reported Lenovo brought in US$9.8 billion in revenue which is a 13 per cent year-on-year improvement. It made the most of this extra revenue; making a record $220 million in profits which is up an impressive 36 per cent year-on-year.

Lenovo didn’t just maintain its lead as No.1 PC company it moved further from the pack by 2.1 points year-on-year, growing in all four geographic market regions; China (PRC), Europe (EMEA), Americas (AG) and Asia Pacific (AP).

As mentioned in the intro Lenovo isn’t aiming just to expand and protect its PC interests it is highly aggressively attacking the smartphone and tablet market. You can see two charts marking its progress below, with a clear growth trend shown in the smartphone market and a recent acceleration in Lenovo tablet sales.

Please note the sliced vertical axis

Lenovo’s own figures say that its smartphone sales grew 78 per cent year-on-year. It is placed fourth overall in smartphone sales worldwide and is a strong second placed supplier in China. Tablet sales grew an astonishing 421 per cent year on year and the firm is making good profits from its sales.

PC market optimism

In forward looking statements Lenovo was understandably positive and optimistic, not just about its PC+ ventures but also about the PC market too. The firm is “confident PC market will improve” and explained this in the following bullet points:

  • Commercial, China market will improve
  • Helping market improve with innovative products
  • Customers no longer see Tablet as PC replacement

Of all the PC makers Lenovo seems to be doing best so it’s good to see them confirm what many HEXUS readers feel, that basically tablets are fun gadgets but not PC replacements.

In related news Lenovo’s IdeadTab Miix 8 and the Toshiba Encore 8-inch Windows 8.1 tablets became available today in the US. We are expecting quite a few 8-inch Windows 8.1 tablets to be on the market by Christmas.



HEXUS Forums :: 3 Comments

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According to IDC Research Lenovo is the biggest PC maker in the world with a 17.3 per cent share of the market.
Good thing about these surveys, if you choose the right one it'll say whomever you want is the leader. IDC like Lenovo, Canalys say it's Apple, and Gartner seem to like HP.

Still preferred it when it wasn't “Lenovo” but “IBM”. :P
Lenovo makes some really good ****. I bought a Y510p for $850 from their website when it would have cost me $1200 to go with any other brand with the same specs. Sorry ASUS :(. Sure it has itès problems like how the touchpad clicking is a little annoying and how it leaves fingerprints all over but it's a small price to pay.
Good for you. We bought a bunch of S205s for a class, just over a year old now, and the batteries are failing - I don't mean they're not as efficient as they were, I mean the laptops just turn off randomly.

That and the clips which hold the batteries in place are made of paper. As are the clips which hold the keys in place - the U450s and U350s were no better in that regard.

The ThinkPad era was something to behold, built like nothing else, but with their attack on the lower end the quality control appears to have gone through the floor.