Lenovo has posted the numbers for its third fiscal quarter, and it’s a healthy report indeed, boasting record profits and revenue.
Lenovo’s revenue rose 15 per cent to $10.8 billion (£6.5 billion) year-on-year, the first time that the company has broken the $10 billion barrier. Profits were even healthier, up 30 per cent to $321 million (£193 million) pre-tax income, with actual earnings standing at $265 million (£160 million).
In total, Lenovo shipped 32.6 million devices in the quarter. The company sold 15.3 million PCs, and maintains its position as the leading PC vendor with an 18.5 per cent market share.
Lenovo shifted more mobile devices than computers, though, with 17.3 million smartphones and tablets shipped. The firm is now the fourth largest smartphone vendor with a 4.8 per cent market share – and of course it’s hoping to further its smartphone influence in the west with the recent Motorola deal.
The latter is an expensive ($2.9 billion, or £1.75 billion) move for Lenovo, but if it can manage to follow the sort of growth the firm has laid down with its PC business in recent times, then it will work out very well. That said, the smartphone market is a very different and faster moving arena compared to the world of computers.
Yang Yuanqing, Chairman and CEO of Lenovo, was predictably pleased with the results, and made mention of the Motorola deal, and also the nabbing of IBM's server hardware (the money is certainly flying around at the moment, that’s for sure).
In a statement, the CEO said: “Lenovo had outstanding performance last quarter, delivering both record revenue and record profit. Leveraging strong execution of our strategy, innovative products and growth in our PC Plus business, we continue delivering on our commitment to improve our profitability and we are confident we will maintain this momentum in our existing businesses.”
“Further, the Motorola and IBM server acquisitions that we just announced are a perfect fit with our PC Plus strategy. While our top priority now is full participation in the regulatory approvals process, I am confident that from day 1 after closing, these businesses will quickly begin contributing to our performance and develop into pillars for long-term, sustainable growth.”