Lenovo Strong in Q4 Despite Decline in PC Market
Lenovo Strong in Q4 Despite Decline in PC Market by UCStrategies Staff
Lenovo continues to grow despite setbacks in the PC market.
Record revenue has been noted for the Chinese computer maker in its fourth-quarter and 2013 full-year results, due to strong PC sales. The company had fourth-quarter sales of $7.8 billion (at a 4 percent year-over-year increase), and full-year revenue of $34 billion, which is 15 percent better than last year.
The Q4 earnings have risen to $127 million (90 percent growth), and the full-year earnings were $635 million, which is a growth of 34 percent from the last fiscal year. Furthermore, Lenovo has stated that a record 15.5 percent market share had been reached, which brings it closer to HP who is currently in the number one spot.
The number of shipments for Lenovo increased by 10.2 percent this year, and this contrasts with the fall of 8.1 percent in the industry during the same period. The increase in Lenovo’s sales are the result of sales in China and emerging markets, and there has also been a 9.8 percent growth in North American PC shipments in Q4.
Generally speaking, the PC industry is in decline, but the recent numbers from Lenovo represent a contrasting image to that. IDC and Gartner have both noted the steepest quarterly decline in worldwide PC shipments in Q1 in the last month.
Lenovo’s smartphone and tablet business is also increasing, and global tablet shipments increased 74 percent for the year.
Additionally, there has been a 206 percent increase year-over-year in smartphone shipments for the company. Smartphone products have not yet been released in North America, but these will be introduced to the region and mature markets in the future.
The Chairman and CEO at Lenovo, Yang Yuanqing, remarked: “Despite a challenging macro-economic environment and ongoing PC industry transformation, Lenovo delivered a strong performance in the 2012/13 fiscal year. Not only were we the fastest growing among all major PC players, with record market share, revenue and profitability, more importantly, our smartphone and tablet businesses saw dramatic growth.” (CY) Link