‘Hypergrowth’: Lenovo Defies PC Slump
Earnings at the Chinese tech giant rose 23% to US$214 million for the first fiscal quarter as its record-breaking growth continues.
One in 5 PC’s sold globally are Lenovo’s and is enjoying ‘hyergrowth’ in smartphones and tablets.
Lenovo’s home market now accounts for one-third of sales compared to almost half 3 years ago, as its global expansion continues apace.
The Yoga maker also delivered on its aim of improving profitability – NPAT rose 25% to $211 million.
Lenovo defied PC slump and grew its global market share to almost 20%. PC shipments for Q1 were up 15 percent to 14.5 million and gained share in every geography including US. In Asia Pacific, its PC market share stands at 15%, driven by strong demand in Japan.
“This has been a quarter of milestones for Lenovo – record PC share, a number three ranking in worldwide tablets for the first time, and an even stronger number four global smartphone position,” said Yuanqing Yang, CEO of Lenovo.
“As the PC industry recovers, the smartphone market continues its shift from premium to mainstream, and our acquisitions of Motorola Mobility and IBM x86 proceed toward completion, we see even more opportunity to keep growing rapidly.”
Tablets volumes soared 67% – growing 8 times the average pace of the market. Lenovo is now No 3 tablet vendor, globally, with 2.3 million devices shipped.
In Australia, JB Hi-Fi is now selling Lenovo consumer tablets and is experiencing much success with more local retailers said to come onboard.
The tablet market is squeezed between convertible PCs and phablet and it may split into ‘niche PCs’ focusing on media consumption with 8-inch + screens with optional keyboards or big-screen smartphones.
It plans to launch a “new generation of products to attack both categories,” according to an investor presentation.
It has also made big gains in smartphone race, during Q1 and became the top selling smartphone in China for the first time.
Lenovo’s mobile division which now includes Motorola is enjoying ‘hypergrowth’ outside China at 350%, especially South East Asia where demand has soared 300% and Eastern Europe up 500%.
Lenovo sold more smartphones than PCs for the first time selling a record 15.8 million, up 39 percent.
It will be a stronger global player with the close of Motorola deal, which it purchased off Google, last year.
Moto products and results are improving significantly with sellout product launches in India, Brazil.