Post-PC Era? Lenovo's Profits Jump Thanks To Record PC Shipments
As flat as PC sales have been in recent memory, the numbers would have been a whole lot worse if it wasn't for Lenovo. While other manufacturers flounder in the face of encroaching mobile technologies, the surging Chinese OEM just announced a massive 35 percent increase in year-over-year sales, bringing its total for the quarter to $8 billion. Of that, $141 million was pure income, which is a similarly impressive 30 percent jump over last year's profits.
In the company's press release, Lenovo placed a lot of the credit on the company's spiking shipments; Lenovo's shipment growth outpaced the top-four competition for the 11th consecutive quarter, the company claims, with an overall increase of 24.4 percent. By comparison, analysts recently pegged Dell and HP as each having an 11 to 12 percent decline in shipments, with Acer's shipments growing by less than 4 percent.
If we're living in a post-PC era, nobody told Lenovo's customers. A full 86 percent of the company's sales come from laptops and desktops, though the company is hedging its bets a bit with the Lenovo Mobile Internet Digital Home division, which focuses on products such as Smart TVs, smartphones and the upcoming ThinkPad Tablet 2. Currently, the group only accounts for 7 percent of Lenovo's revenue, but that's on the back of a 173 percent increase in yearly sales. Lenovo's offerings are especially popular in Asia, where the company recently became China's second-largest supplier of cell phones.
Speaking of which, the bulk of Lenovo's revenues came from overseas. With $3.5 billion worth of electronics sold, China alone comprised 44 percent of the company's sales. The Middle Eastern and Africa saw a whopping 62.3 percent increase in shipments, while Asia Pacific and Latin America contributed a similarly impressive 59.2 percent shipment boost. The U.S. sector saw a much more modest 6 percent increase in sales.
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