Lenovo sees dividends in emerging markets

The company presented mixed fourth-quarter results, but exceeded expectations for its full-year accounts, reaping the rewards of its strategy to target emerging markets

Lenovo's fourth quarter was a mixed bag relative to expectations, but its strategy to protect its home turf — China — and mature markets such as the US while attacking emerging markets appears to be working well.

The PC maker reported fourth-quarter earnings of $42m (£25.5m) on sales of $4.88bn. Wall Street analysts were expecting revenue of $5.08bn, according to Thomson Reuters. Barclays Capital was looking for $5bn. Earnings appear to be better than expectations, but the estimates are all over the place.

For fiscal 2011, Lenovo doubled its profit to $273m on revenue of $21.6bn, topping expectations. In the big picture, Lenovo is outgrowing the overall PC market and has global market share of 10.2 percent. Emerging market PC shipments were up 31.5 percent in the fourth quarter. 

For more on this ZDNet UK-selected story, see Lenovo's emerging markets strategy paying off on ZDNet.com.

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