Lenovo Surges on Healthy PC Sales
- Paul Thurrott
- May 23, 2019
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The world’s number one maker of PCs continues to buck market trends: Lenovo just tripled its profits thanks to PC sales.
Lenovo’s solid financial performance is the result of persistent execution of our transformation strategy,” Lenovo chairman and CEO Yang Yuanqing said. “At a time of great global change – economically, socially and environmentally – we continue to focus on how we ‘intelligently transform’ ourselves and enable our many customers around the world successfully to do the same. I am proud of our strong results and confident in how we will climb to new heights in the future.”
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Those results are indeed impressive. Lenovo posted net income of $597 million on revenues of $51 billion for its fiscal year, the latter of which is a record and is up 12.5 percent year-over-year. For the quarter ending March 31, Lenovo reported revenues of $11.7 billion, representing YOY growth of 10.1 percent.
Lenovo’s PC business is going gangbusters: It delivered net income of $1.98 billion on record revenues of $38.5 billion for the fiscal year, making the firm the world’s biggest PC maker by unit sales, with 23.4 percent market share.
“The growth strategy of PC and Smart Devices focusing on commercial, high-growth and premium segments has paid off in delivering record revenue for the fiscal year,” Yang added.
Lenovo is also the fastest-growing of the top five PC makers, which is in some ways even more impressive. Lenovo grew its marketshare by almost 10 percent during its fiscal year. Revenue from PCs also grew 10.3 percent YOY. This all occurred during a time when PC sales fell 4.6 percent, according to Gartner.
The only dark cloud on the horizon for Lenovo is the heating U.S./China trade war that is currently engulfing Huawei in a wave of evidence-free fear mongering. But Lenovo says it is “well poised to navigate the turbulence in the geopolitical and macro-economic environment,” referring to his firm’s ability to move PC manufacturing out of China and to India, Mexico, Hungary, Brazil and the United States, if needed.
“We definitely don’t want to see this situation,” Mr. Yang told Reuters. “We’ve always said we wish the two governments can get the agreement as early as possible.”