Lenovo rides ThinkPad, enterprise upgrade cycle, China to strong third quarter

Lenovo rides ThinkPad, enterprise upgrade cycle, China to strong third quarter

Summary: Lenovo delivered strong fiscal third quarter results as it gained share in China and rode the ThinkPad as corporate PC upgrades continued.

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Lenovo delivered strong fiscal third quarter results as it gained share in China and rode the ThinkPad as corporate PC upgrades continued.

The PC maker delivered strong growth and maintained its global market share at 10.2 percent. Lenovo checked in with 32.2 percent market share in China. Meanwhile, Lenovo continued to gain ground in emerging markets.

Lenovo's strategy is to protect its market share in China and established markets while aggressively pushing into emerging markets.

Here's a look at Lenovo's China share.

And emerging markets.

The company reported fiscal third quarter net income of $100 million , or 98 cents a share, on revenue of $5.8 billion, up 22 percent from a year ago. Those results were in line with expectations. Lenovo CEO Yang Yuanqing said the company was focused on building its global brand and tackling the mobile market. Yuanqing also indicated that the corporate PC upgrade cycle is likely to continue.

By the numbers:

  • Lenovo had $2.7 billion in third quarter sales from China, up 18 percent from a year ago.
  • Emerging markets accounted for $1.1 billion in sales, up 34 percent from a year ago.
  • The U.S. accounted for $2 billion in third quarter sales, up 22 percent from a year ago.
  • Laptops accounted for 59 percent of Lenovo's total sales.
  • Lenovo Mobile had sales of $218 million. Lenovo added that it is past supply constraints for devices like it's LePhone.

Topics: Laptops, Banking, Enterprise Software, Lenovo, Mobility, China

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  • RE: Lenovo rides ThinkPad, enterprise upgrade cycle, China to strong third quarter

    Of COURSE their China share is greater than the market's...the Chinese buy their own. Too bad Americans don't know enough to do the same.
    Techboy_z
    • RE: Lenovo rides ThinkPad, enterprise upgrade cycle, China to strong third quarter

      @techboy_z And just how did Lenovo end up with these lines of products?

      They came from IBM.
      Where were they made? America.

      The reason why the division was sold? NOBODY WAS BUYING THEM. Having great products is one thing, but the issue is that IBM is relatively poor at advertising those products that are also sold to consumers.
      Buying a System z10 is one thing, but buying a laptop like a T60 is totally another.

      The enterprise gets computers based on a few issues- "How hip is it" isn't one. That's why most enterprises won't shell out the money for a Mac, but will shell out the increased price for a Thinkpad, because it is the better option for the specifications you get (in contrast to 'American manufacturer's' lines)- more power, lasts longer (if you drop a Thinkpad it won't break. If you drop a Macbook Pro or an HP Probook, goodbye computer!), a Windows environment, etc. etc.

      They're the better computer- wherever they come from.

      What are you going to do?
      R220