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Lenovo shrugs off PC downturn

by on23 May 2013

Making shedloads

Lenovo’s acquisitions in its flagship PC business, a move into mobile gadgets, and light debt load are setting it apart from PC rivals. While the rest of the PC world suffers, Lenovo posted on Thursday an estimate-beating 90 percent rise in quarterly profit.

The outfit has been buying several distributors in different regions such as Brazil, Europe and Japan over the past few years. Analysts think they are winning on better distribution, as well as gains in market share. The Chinese PC maker posted net profit of $126.9 million in the quarter ended in March, up from $66.8 million a year earlier.

That beat expectations of a $110 million net profit and was the fastest pace since the first quarter of the 2011/2012 fiscal year, when growth doubled. Lenovo is outstripping other vendors. HP, Dell, Acer and Asustek Computer fell by 11-33 percent during the same period.

The latest IDC data showed that Lenovo's market share was 15.3 percent, just 0.4 percentage points lower than HP. While Dell and HP have staged strong recoveries, Lenovo's quarterly net profit has risen consistently over the past few years.

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