Lenovo’s Online Sales Up 53% During COVID
Lenovo’s revenue rose by 7% year-on-year (y-o-y) in the second quarter of the year to reach US$13.3 billion, despite the challenging global environment. The company’s pre-tax income increased even more sharply, up 38% y-o-y to US$332 million.
The company’s PC and Smart Device (PCSD) line of business – which accounts for roughly 80% of Lenovo’s total revenue – recorded y-o-y growth of 10.1%, underpinned by ‘work and play from home’ and remote learning trends.
“Work-from-home demand has been a clear catalyst for thin-and-light notebook PC sales, while consumers are buying more gaming PCs to meet their play-from-home requirements,” Lenovo stated.
“E-learning has emerged as a consistent driver across all regions and the Group’s Chromebook shipments increased by 17% y-o-y.”
Lenovo also reported that the so-called e-commerce evolution is pushing a greater number of transactions through the brand’s online site, resulting in 53% y-o-y growth in e-commerce revenue over the second quarter.
“Our outstanding performance last quarter proves that Lenovo has quickly regained momentum from the impact of the pandemic and is capturing the new opportunities emerging from remote working, education and accelerated digitisation,” said Yang Yuanqing, Lenovo Chairman and CEO.
“While the world continues to face challenges, Lenovo is focused on delivering sustainable growth through our core businesses, as well as the new services and solutions opportunities presented by our service-led intelligent transformation.”
Looking ahead, Lenovo expects that the emerging trends arising from the COVID-19 pandemic will enlarge the market for PCSD and cloud infrastructure, and accelerate the development of 5G services.
As such, Lenovo plans on launching new 5G smartphone products (such as the Moto Edge+ 5G smartphone), expanding its e-commerce infrastructure, and investing in high-growth segments of PCSD.