Lenovo third quarter profits up 88%
Chinese company now second biggest PC vendor
TechTrade | 03 Nov 2011 :
Lenovo's profit for the third quarter nearly doubled year on year as the company continued its fast-paced growth, beating Dell to become the world's second largest PC vendor.
For the quarter ending 30 September, Lenovo reported profit of $144 million, up 88% from the $77 million in the same period a year ago. Revenue in the quarter was $7.78 billion, an increase of 35% year on year.
Lenovo's PC market share in the quarter reached 13.5%, surpassing Dell, according to research firm Gartner. In the second quarter, Lenovo took the third spot, ahead of Acer.
Despite global PC sales slumping due to weak spending and rising demand for tablets, Lenovo has continued to post double-digit growth in shipments for the last quarters, making it the fastest growing PC vendor among the top five companies.
Lenovo has credited this to protecting its home turf in China, which in the second quarter exceeded the US in PC shipments and sales. Lenovo leads in China with a 31.5% market share, according to the company.
Along with PCs, Lenovo has also been seeking a larger share of the tablet and smartphone market. In the last quarter, Lenovo's smartphone shipments grew by 335% year over year, much of the growth driven by the company's LePhone A60 handset sold in China. Lenovo has also risen to become the second-largest tablet vendor in China, with an 8.4% market share, according to the company.
Lenovo plans to create tablets and smartphones for China, where the company sold 160,000 tablets in the last quarter.
Lenovo also announced on Wednesday that its chairman, Liu Chuanzhi (pictured), will step down. Liu, the founder of Lenovo, will focus on his work with the company's parent Legend Holdings, which invests in different industries.
IDG News Service