Lenovo Falls To #2 PC Maker After Return To Revenue Growth
Lenovo has reported its first revenue growth in five quarters with an increase of 4.9% to US$9.6 billion, despite forfeiting the top PC maker spot to HP during the period.
Net profit for the company fell less than analysts had predicted, with a 41% drop to US$107 million for the quarter ending March 31, above an estimated US$97.9 million.
At the end of what Lenovo described as a “year of significant transformation”, net profit was US$535 million for the full year, up from a loss of US$128 million the year before, while revenue fell 4.2% to US$43.0 billion.
“To drive further growth, we have clearly defined the three-wave strategy,” said Lenovo Chairman and CEO Yang Yuanqing.
“We will maintain PC leadership in scale, profitability and innovation in the first wave, while building our second wave, mobile and data center businesses into growth engines. Simultaneously, we will execute our third wave of ‘Device + Cloud’ and ‘Infrastructure + Cloud’ to capture the opportunities brought by new technologies. With this new strategy, we are confident to achieve long term, sustainable growth,” Yuanqing said.
After worldwide quarterly shipments of traditional PCs grew for the first time in five years according to IDC, Lenovo’s 1.7% growth during the quarter was not enough to help it retain the top spot after four years.
Sales of HP’s notebooks in all regions helped it to achieve growth of 13.1% for a market share of 21.8%, compared to market shares of 20.4% for Lenovo, 15.9% for Dell, 7.0% for Apple and 6.8% for Acer.
Lenovo attributed some of its revenue growth during its fourth quarter to sales of its gaming PCs, Chromebooks and detachables, which saw a 20.5%, 38.2%, and “double digit” increase in shipments, respectively.