Lenovo revenue surges 19% fuelled by devices and data center business

Lenovo Group announced revenue of $11.91 billion (+19 percent) – fuelled by devices and data center solutions business — for its first fiscal quarter ended June 30, 2018.
LenovoChina-based Lenovo has generated revenue of $9.95 billion (+14 percent) from Devices Group (Personal Computer, Smart Devices with Mobile Business) and $1.6 billion (+67.8 percent) from Data Center Group (DCG).

Lenovo CEO Yang Yuanqing said: “We will maintain industry leading profitability and premium to market growth in PCs; return the smartphone business to health; build the data center business into a sustainable growth and profit engine, and invest in Smart IoT + Cloud and Infrastructure + Cloud to drive sustainable return.”

“In key emerging markets, China and India, we are committed to investing in the right brand strategy and the product portfolio and quickly return to healthy growth,” Yang Yuanqing said.

Lenovo devices business

Lenovo’s PC and Smart Devices (PCSD) business achieved 19 percent increase in revenue, the strong double digit revenue growth for the second consecutive quarter, with profitability of 5 percent.

Lenovo has regained its global PC number one position according to Gartner. Lenovo began making investment in growing its portfolio of smart devices including smart home; smart office and AR/VR.

Lenovo’s Mobile Business Group (MBG) reduced operating expenses by more than $100 million. It focused on selected markets where the company can compete profitably. Lenovo’s mobile volume nearly doubled in North America due to the right scaling strategy to expand to all four major carriers.

Lenovo’s Data Center business

Lenovo’s Data Center business reported third consecutive quarter of double-digit revenue growth. The record high revenue was driven by growth in Software Defined Infrastructure, High Performance Computing & A.I businesses and Hyperscale.

Lenovo said it surpassed HPE to become the #1 supercomputer provider on the TOP500 supercomputing list for the first time, with 117 systems.

Lenovo’s Capital and Incubator Group (LCIG) invested to build the Group’s next-generation IT capabilities in AI, IoT, Big Data and VR/AR across various sectors such as manufacturing, healthcare and transportation.