Lenovo has announced its second quarter results, and it’s remarkable that it hasn’t done so with fireworks and a marching band because clearly business is booming.
The Chinese hardware giant has had an outstanding few months, selling 29 million devices in the three-month period ending on 30 September. That works out as a supersonic four devices shifted every second.
According to the figures, laptops constituted the largest portion of the sales pie at 51 per cent – an unsurprising fact considering Lenovo pinned the shiny accolade of world’s leading PC manufacturer to its chest in July.
Still, the introduction of its latest Ideapad and the recently announced Yoga convertible could reshuffle the deck of Lenovo’s most profitable departments in the run up to the Christmas period.
The company’s strong growth can be attributed to a wise policy of diversification, with the company expanding into smartphones, tablets, and even smart TVs which now account for 15 per cent of Lenovo’s revenue versus just 4 per cent two years ago.
"Lenovo not only remains the top PC company in the world,” said Lenovo chairman and CEO, Yang Yuanging, clearly pleased, “but it is also already the number four player in both smartphones and tablets worldwide and continues growing rapidly. At the same time, we have achieved record revenue and record profit, and improved profitability significantly."
"We are optimistic about the industry’s outlook. 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. These are Lenovo's strength areas.”
The results are particularly impressive when we consider the recent news that Acer posted a loss for the same quarter, being forced to make 7 per cent job cuts.
Lenovo now stands as the third largest smartphone maker, second in combined PC and tablet sales and is still holding on as leader of the PC pack with pre-tax profits of $265 million (£164.9 million) making it the number one in PC sales.
Image: Flickr (Cory M. Grenier)