Infotech Lead Asia: Lenovo has reported sales of $9.4 billion in third fiscal quarter ended December 31, 2012, up 12 percent.
Lenovo’s third quarter earnings reached $205 million, an increase of 34 percent over the last year.
Gross profit for the third fiscal quarter increased 15 percent to US$1.1 billion, while operating profit for the third quarter was $243 million, a 26 percent increase.
The Company’s ‘Protect and Attack’ strategy – protecting the two profit pools of global commercial PC and the China businesses, while attacking three high growth opportunities in emerging markets, global consumer and PC Plus products, such as smartphones, tablets and smart TVs – continued to deliver results.
Lenovo’s global commercial PC and the China businesses delivered 50 percent of the company’s revenues in the third quarter.
Its Mobile Internet and Digital Home (MIDH) revenues, which include its smartphone, tablet and smart TV businesses, accounted for 11 percent of company revenue this quarter, up 77 percent year over year.
During the third fiscal quarter, Lenovo’s PC shipments grew 7.9 percent to 15.9 percent marketshare.
“With the strong execution of our ‘Protect and Attack’ strategy, Lenovo has not only achieved record revenue, profit and global PC market share last quarter, but also our smartphone and tablet businesses have delivered hyper growth. Even more, our worldwide tablet and China smartphone businesses have become profitable,” said Yang Yuanqing, chairman and CEO, Lenovo Group.
Lenovo China achieved $4.1 billion in consolidated sales in the third fiscal quarter, an increase of 17 percent year-over-year, accounting for 43 percent of the company’s worldwide sales.
Lenovo’s PC Plus strategy fueled performance in China with 83 percent MIDH revenue growth and a revenue contribution in China of 22 percent. Lenovo’s PC shipments in China grew two percent year-over-year in the quarter.
In the Asia Pacific/Latin America region, Lenovo achieved 11.3 percent market share in the third fiscal quarter, up marginally. The company grew its PC shipments across the region by four percent.
Lenovo in Europe Middle East & Africa grew PC shipments by 25.5 percent and became the second largest PC seller in this region, with 11 percent market share, an increase of 3.2 share points year-over-year.
Lenovo’s PC shipments in North America in the third fiscal quarter increased 11 percent year-over-year, in a market that fell by about seven percent. In North America, Lenovo made significant inroads into the high-end consumer space, taking a large slice of sales of Windows 8 powered convertible devices – including 30 percent share of the US$700-and-above market and 45 percent share of the US$900-and-above market.
Anand B
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