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Lenovo does better than expected

by on03 November 2020

Remote working benefit

Lenovo posted a better than expected quarterly profit and said it is continuing to benefit from “new normal” remote working after COVID-19.

The Chinese outfit said it set new records for group revenue, pre-tax income, and net income, and all three key business groups delivered year on year growth for the first time in six quarters.

Chairman Yang Yuanqing said: “Last quarter was what I would call a perfect quarter for Lenovo. I hope the current quarter could be even better.”

Lenovo reported a 53 percent jump in net profit for the quarter ended September to $310 million, beating average analyst estimate of $224 million.

Revenue increased seven percent to $14.5 billion.

With the pandemic forcing companies worldwide to seek work-from-home options and people preferring to stay indoors, the company expects to benefit from increased sales of PCs and tablets.

“Our gaming PCs and our thin-and-light PCs actually grow margin faster than other products,” said Yang.

Yang predicted that there would be a five to 10 percent increase in the total addressable market for PCs next year.

Lenovo strengthened its lead in PCs with 25.7 percent of the market, ahead of HP (21.6 percent) and Dell (15.2 percent) share.

Yang said a component supply shortage, particularly for display and integrated circuits, is keeping the company from meeting customer demand.

“The issue is not demand, it’s supply. If we can fill enough supply, we can sell more products”, he said.

Last modified on 03 November 2020
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