Lenovo Posts $77M Profit, PC Sales Soar
Chinese-based Lenovo has continued its financial rebound, posting better-than-expected Q1 net profit of US$77 million, despite a soft global PC market.
For the quarter ending June 30th, revenue soared 19% to US$11.91 billion – its second straight quarter of double-digit revenue growth.
The results are a stark contrast versus the US$72 million loss recorded the same period last year.
Despite a slump in the overall market, Lenovo claims its achieved its highest PC sales growth in four years.
The company’s ‘Personal Computers and Smart Devices’ business notched a 16% [YoY] revenue increase to US$7.7 billion.
For the year, the division revenue has lift 8% to US$32.4 billion.
According to Gartner, Lenovo has retained its position as the world’s leading PC manufacturer, despite a continued slump in the overall market.
For the first time in 6 years, global PC shipments post positive year-on-year growth in Q2, following “steady” business demand.
Asia Pacific PC shipments remained relatively flat, climbing 0.1% year-on-year to 21.3 million units.
Despite the rise, Gartner analysts assert it’s not enough to declare a recovery of the PC market.
Gartner Principal Analyst, Mikako Kitagawa, affirms changing consumer behaviour has reduced the need for a PC.
Lenovo achieved the top spot in Q2, with market share notching 21.9% – its highest growth rate since Q1 2015.
Chairman and CEO, Yang Yuanqing, claims Lenovo remains “focused” on its core PC business, with the view to post further divisional profitability, despite added investments:
“We will focus on building competitiveness in Smart IoT devices, data center infrastructure, and vertical intelligent solution, and we are well positioned to take advantage of smart IoT and intelligence era.”
Shares in Lenovo spiked 6% by mid-morning after the results were released.