Lenovo Q3 Performance Reach “Record High” Revenues
Lenovo Group marks the 10th consecutive year-on-year quarter of growth with revenues in Q3 2019 reaching a record high of US$14.1 billion, while pre-tax (PTI) and net income both saw an 11% spike – reaching US$390 million and US$258 million respectively.
“Last quarter, despite the geopolitical uncertainties and industry-wide supply shortages, we delivered a record-setting performance with geographical balance, operation excellence and solid strategy execution,” said Yang Yuanqing, Lenovo chairman and CEO.
“Both group revenue and PTI reached all-time highs. These core competencies not only enable us to seize the opportunities of technology transformation and drive sustainable growth, but also help us address the challenges we face today.”
Lenovo’s Intelligent Devices Group (IDG) continues to lead the company’s strong performance. The PC and Smart Devices Group (PCSD), one of the two IDG business units, set all-time records for revenue at US$11.1 billion, PTI of US$684 million and a PTI margin of 6.2%.
These record results demonstrated Lenovo’s world-class performance capability, especially in overcoming a significant and dynamic industry-wide CPU shortage.
In PCs, Lenovo extended its clear #1 position with record high shipments, outperforming a growing market by almost 2 percentage points. Lenovo also finished #1 for the calendar year with share of 24.3% – up 1.6 points year-on-year.
Volume in high-growth and premium categories such as Gaming, Thin & Light, Visuals, Workstations and Chromebooks continued to grow at high double-digits and significantly outgrew the market by double digits year-on-year.
IDG’s second business unit, the Mobile Business Group (MBG), posted its fifth consecutive quarter of profitability. Going forward, the mobile business will continue to strengthen profitability, while driving growth in new markets.
In addition, the recently launched Motorola Razr signals a re-entry for the company to the premium segment, which will continue to be an ongoing focus for the company in the future.
Looking ahead, future growth is expected across all areas, in particular from servers, storage, SDI, High Performance Computing, software and services as the Group focuses on increasing customer diversity and broadening indirect channels.