Lenovo fiscal Q3 profit up 54%, increases China share
9 February 2012 | 0
Lenovo’s profit in its fiscal third quarter ended 31 December grew 54% year-over-year, as the company saw growth in many key markets.
PC shipments increased by 37%, the Chinese PC vendor reported on Thursday.
Profit was $153 million at the end of the quarter, while revenue rose by 44% year-over-year to $8.4 billion.
Lenovo’s business continues to grow despite a sluggish PC market brought on by uncertain economic conditions and consumer interest in tablets. The company was rated by research firms Gartner and IDC as the world’s second largest PC vendor, surpassing Dell, in the third quarter of 2011.
Lenovo has credited its success to its focus on strengthening its PC business in China – expected to be the world’s largest PC market in 2012 – while also "attacking" emerging markets such as Russia and India. In China, the company said it now had a record 35.3% market share.
Lenovo reported growth in mature markets. The company said its PC shipments in Western Europe and North America increased by 67% year-over-year during the quarter.
In its mobile Internet business, which includes tablets and smartphones, Lenovo reported "strong progress". In the fiscal third quarter, the company sold 6.5 million handsets, of which almost half were smartphones.
In the past, the company’s mobile phones have only been available in China. Lenovo plans to begin selling smartphones in other emerging markets, said the company’s CEO Yang Yuanqing on Thursday during a conference call. He did not specify which countries.
Lenovo also plans to release its first smart TV in China this April. The company will use the product to test the market. "We don’t have too high expectation on the sales volume," Yang said.
Its K91 Smart TV can run Android 4.0 applications, and includes voice control. But the company hasn’t said if the device, which will ship with two different screen sizes – 42" and 55", will be released in Europe.
IDG News Service