Lenovo revenue grows 7% to $14.5 bn despite Covid-19 concerns

Lenovo Group recorded 7 percent increase in revenue in the second quarter to $14.5 billion — despite concerns around Covid-19 disruptions.
Lenovo event in 2016
Lenovo sees a positive outlook for the second half of the year, with the new global norm of work, learn and play from home driving long-term growth trends in device demand and cloud/infrastructure requirements.

Lenovo expects the total PC market to grow well beyond current analyst forecasts to closer to 300 million units in calendar year 2020, around 25 million more than the total available market last year.

Lenovo’s Intelligent Devices Group (IDG) continues to lead the Group’s growth with record revenue for the PC and Smart Devices Group (PCSD) of $11.5 billion, up 8 percent year-on-year.

Lenovo leads the global PC market with #1 market share of 23.6 percent.

IDG’s second business unit, Mobile Business Group (MBG), had revenue growth of 39 percent quarter-to-quarter and returned to year-on-year growth.

Growth in the company’s stronghold markets of Latin America and North America was further solidified, while growth in Europe and Asia Pacific was accelerated. The quarter also saw key innovation milestones with the launch of the razr 5G foldable smartphone and the company’s first dedicated gaming phone under the Lenovo Legion brand.

The Data Center Group (DCG) revenue grew 11 percent year-on-year to $1.48 billion, with improved profitability. The Cloud Service Provider revenue increased 34 percent year-on-year, with strong growth across all geographies.

Lenovo revenue in the Enterprise and SMB was close to flat year-on-year but outperformed the market forecast by 3 points. Lenovo achieved double-digit growth across the business in Software Defined Infrastructure (22 percent), Storage (15 percent), Software (47 percent) and Services (11 percent).

Lenovo’s Intelligent Transformation saw strong momentum in Q2, with double-digit growth in all its segments. The results demonstrate its significance as a long-term growth catalyst for the Group. Smart Internet of Things achieved growth of over 36 percent. Smart Infrastructure grew 21 percent. Smart Verticals rose 72 percent.

Software and Services grew 39 percent to $1.2 billion, representing more than 8.5 percent of Group revenue.

Lenovo’s Attached Service and Software, Managed Service and Solutions saw fast growth and E-commerce revenue grew by over 40 percent year-on-year.

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