The Chinese are coming – ThinkPad maker is now No.3 worldwide- with “record” 12.2% share.
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| Lenovo ThinkPad tablet. |
Reporting its first fiscal quarter to June 30, Lenovo grew faster than the top five PC makers like Dell (No.2) and HP (No.1), pushing it to No.3 spot by shipments, shoving Acer down to No.4, according to analysts IDC.
The ThinkPad creator bucked the trend – with global PC shipments growing a massive 23.1% year-over-year – the ninth quarter in a row the Chinese giant outperformed the industry, which increased just 2.7%.
Net profit was $108.8m for the first quarter, a jaw dropping 98% rise compared with the same period in 2010.
Lenovo reported a pre-tax income of US$123m, a whopping 64% jump compared to a year ago. Consolidated sales jumped 15% to a “record” $5.9bn.
Lenovo China recorded $2.8 bn sales in the first quarter – accounting for almost half of all sales (47.9%), strengthened its No.1 position in the world’s biggest consumer market to 31.7%.
But its ‘protect and attack’ strategy on foreign markets also paid off, said Lenovo Chairman Liu Chuanzhi.
‘Emerging markets’ like India and Korea returned $1bn sales, or 17.5% of all worldwide sales, shipments jumped “dramatically” by 46.5%.
‘Mature’ markets, which include Australian and NZ, accounted for 34.6% of all sales or US$2.1bn, with PC shipments jumping 8.5%. Of particular note, the market in North America grew by one third.
Lenovo’s laptops continued to be the largest contributor to sales (worldwide), up 23% including new ThinkPad X1 the ‘thinnest, lightest, and highest performance combination for its class.’
They generated almost 60% of total revenue. Total desktop PC sales also jumped almost 20% globally.
And the Chinese maker has been busy with M&A’s outside its native market.
Lenovo acquisition of MEDION AG (sold in Lidl here), ‘a leader in PC and electronics’ in Germany in June, will see double its market share in Europe’s largest market, it said yesterday.
The giant’s joint venture company with NEC, will make it the largest such company in Japan and “number one PC vendor in two out-of-the three largest PC markets in the world.”
“The solid execution of the successful “Protect and Attack” strategy fueled Lenovo’s strong performance in the past fiscal quarter that we have achieved record high in global shipments, revenue as well as global market share,” said Liu Chuanzhi, Lenovo Chairman.
“Our results show that Lenovo’s acquisition of the IBM PC business has become a success,” he added.
“Over the past two years, we have placed emphasis on and invested significantly in our business growth,”said Yang Yuanqing, Lenovo CEO.
The giant is also launching a new slew of smartphones “in the coming months.”
Just last month, Lenovo introduced three new tablets, the IdeaPad Tablets K1 and P1, and the ThinkPad Tablet, which it is hoping will do the business like its laptops.
Basic earnings per share was 1.11 US cents, or 8.63 HK cents. Net cash reserves as of June 30, 2011, totaled $3.6bn – okay, not as good as Apple, but Lenovo definitely are out to get global domination.
Look out iPad.
