Lenovo Reports Record-Breaking Profits

Industry-wide, PC sales are declining, but the Chinese manufacturer had an exceptional quarter, taking market share away from its competitors.

China-based Lenovo has reported its best quarterly earnings ever. It gained market share in the PC industry, and its smartphone business turned a profit for the first time.

InformationAge reported, "Lenovo has reported the most profitable financial quarter in its history, while outpacing Western rivals in revenue growth. The Chinese PC and phone manufacturer grew profit 34% year-on-year to $205 million in the final three months of 2012 – smashing analysts' expectation of $178 million."

The Wall Street Journal's Paul Mozur added, "Though global demand for PCs is sagging, in recent years Lenovo has managed to take market share from competitors such as Hewlett-Packard Co. and Dell Inc across the globe as those companies increasingly focus on services and catering to businesses. In its fiscal third quarter, Lenovo continued to bolster sales of computers, while also improving on strong smartphone sales within China."

Computerworld's Michael Kan observed, "The Chinese company is within striking distance of overtaking rival Hewlett-Packard for the top spot as world's largest PC maker. In the quarter, HP had a market share of 16.7%, according to preliminary results from research firm IDC. Lenovo was just one percentage point behind."

The Verge's Vlad Savov noted, "Traditionally strong in its native China, Lenovo is also managing to export its success to the all-important United States, where the company saw 11 percent growth year-on-year, in a market that fell 7 percent overall. It has now been a remarkable 15 quarters in a row where Lenovo's growth has outpaced the industry overall."

Tags: smartphones, China, earnings, PC sales, Lenovo, profits, quarterly financials

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