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.
