Lenovo announced its 8th consecutive quarter of revenue growth, thanks largely to double-digit growth in its PC business.
“This fiscal year kicked off to an excellent start,” Lenovo chairman and CEO Yang Yuanqing said in a prepared statement. “Once again, this quarter’s strong results provided solid evidence that Lenovo’s Intelligent Transformation is enabling the company to drive sustainable, profitable growth in today’s dynamic and changing world. Our persistent execution and operational efficiency allow us to bring our vision to life and deliver smarter technology for all.”
Lenovo reported net income of $162 million on revenues of $12.5 billion for the quarter ending June 30. Both figures are more than double the results from the same quarter last year, and the net income figure is a record for Lenovo’s first fiscal quarter.
The firm largely credits its PC and Smart Devices Group, which saw double-digit revenue growth of 12 percent in the quarter, for the surge. Lenovo’s PC business generated over $2 billion in revenues and outgrew the market, hitting an all-time high of 24.9 percent marketshare.
“This means one in every four PCs built in the world is a Lenovo PC,” the firm noted, “cementing Lenovo’s position as the worldwide number one in PCs.”
To attain this growth and leadership, Lenovo said that it has specifically targeted high-growth and premium categories within the PC market, including “Chromebook, Gaming PCs, Thin and Light, Visuals, Workstation.” It added that it will sustain this growth going forward by also “innovating in Smart IoT, commercial Smart IoT and developing new devices for homes and offices.”
It’s not all good news: In a post-earnings conference call, the company reported that proposed U.S. tariffs on Chinese consumer electronic goods could have a negative effect. “Retail prices for products like PC and smartphones will increase if (U.S.) tariffs increase,” Mr. Yuanqing said.
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