Infotech Lead Asia: Lenovo Group revenue rose 15 percent in FY 2013 to $34 billion.
Its pre-tax profit increased 38 percent to $801 million.
Net profit rose 34 percent to $635 million.
Lenovo says its market share in PCs was 15.5 percent.
It achieved 5.9 percent share in Smart Connected Devices and global #3 ranking in FY 2013.
Lenovo’s fourth quarter revenue rose 4 percent to $7.8 billion. Its pre-tax income increased 63 percent to $166 million. Profit jumped 90 percent $127 million.
In FY 2013, Lenovo’s PC shipments grew 10.2 percent compared to industry decline of 8.1 percent. Gross profit was $4.1 billion, up 18 percent. PC business’ gross margin was 12 percent, while operating profit was $800 million, up 37 percent. Lenovo’s earnings grew 34 percent to $635 million.
Lenovo’s smartphone shipments were 3.7 times more than last year globally.
It is now the number two in the China smartphone market.
Lenovo China achieved a 4.9 percent operating margin on $3.1 billion in consolidated sales in the fourth fiscal quarter. This was an eight percent or $228 million increase of revenue, accounting for 40 percent of worldwide sales.
Lenovo’s PC Plus push was strongest in China with 74 percent MIDH revenue growth and a revenue contribution in China of 21 percent. MIDH’s profitability also continued to improve. Lenovo grew its number-one PC market share position in China, the world’s largest PC market, to 31.7 percent, up 1.7 points. Lenovo’s PC shipments in China benefited from its deep penetration in emerging cities and the country’s ongoing urbanization.
In the Asia Pacific/Latin America region, Lenovo achieved 11.7 percent market share in the fourth fiscal quarter, up 1.1 points.
With the regional PC market that was down 8.5 percent year-over-year, the company grew its PC shipments across the region by one percent. Lenovo remained number one in Japan and increased its lead over the competition. Consolidated sales across the region totaled $1.7 billion or 21 percent of Lenovo’s worldwide sales, while operating margins were profitable.
Lenovo in Europe, Middle East & Africa grew PC shipments during the fourth quarter by 11 percent and continued to strengthen its number two position in PCs across the region, with 11.8 percent market share, an increase of 3.2 share points. This is a 30 point premium to the market that saw a 19.5 percent decline in the region. The company had consolidated sales in the fourth quarter of $1.8 billion, up 6 percent, and contributed 24 percent of Lenovo’s total worldwide sales. Operating profit margin was 2.3 percent, up 1.4 point.
Lenovo’s PC shipments in North America in Q4 increased 9.8 percent year-over-year, in a market that fell by about 12 percent. It gained 1.8 share points to market share of 9.3 percent. Sales grew 13 percent to $1.2 billion in Q4, or 15 percent of Lenovo’s total worldwide sales. In North America, Lenovo’s devices like Yoga and Twist have number 1 position with nearly 50 percent market share.
Lenovo’s laptop PC business in Q4 decreased 2 to $4.2 billion, accounting for 53 percent of the company’s sales.
During the same period, Lenovo’s laptop PC shipments increased 0.4 percent, against the backdrop of an overall industry decrease of 14.2 percent.
In Q4, Lenovo introduced several new consumer laptop PCs, led by the IdeaPad U310 and U410, mainstream thin and light Ultrabooks with 10-finger touch, and the IdeaPad Z400 and Z500 entertainment-optimized laptop PCs, featuring an immersive sound experience. For business customers, Lenovo introduced the new ThinkPad T431s, the thinnest T-series ever, the T-series being Lenovo’s highest selling laptop line.
In Q4, Lenovo’s desktop PC shipments held flat, against an industry decline of 12.2 percent worldwide.
Lenovo’s desktop PC sales decreased 2 percent to US$2.4 billion, or 30 percent of the company’s overall sales worldwide.
In Q4, Lenovo introduced Horizon, an all-in-one table PC and the Company’s first interpersonal PC, a multi-user, multi-touch, multi-mode device for the home that allows users to turn their personal computing experience into a shared computing experience.
picture source: thehindu.com