Lenovo doubles net profit
Lenovo Group Ltd said its net profit more than doubled in the quarter to June 30, thanks to booming computer sales and a market rebound.
Net profit reached US$162 million in Lenovo’s first fiscal quarter, up 111 percent from a year ago. Revenue grew 5 percent year-on-year to US$12.5 billion in the quarter.
“Lenovo’s Intelligent Transformation is enabling the company to drive sustainable, profitable growth in today’s dynamic and changing world,” Yang Yuanqing, chairman and CEO, said in a statement.
The company's global footprint, in 180 regional markets, makes the company “well positioned” in spite of “industry-wide geopolitical and trade uncertainties,” Yang added.
In its PC business, sales growth outgrew the market. In the quarter, Lenovo hit a record PC market share of 24.9 percent globally, meaning one in every four PCs in the world is from Lenovo.
Global PC market sales rebounded slightly recently, thanks to demand in gaming and industrial applications. Before that, global PC market sales decreased in several consecutive quarters with the popularity of smartphones, analysts said.
Lenovo is expanding in sectors including mobile business and data centers, which are expected to fuel Lenovo’s future growth.