Lenovo reports most profitable quarter ever
As Western manufacturers crumble, Chinese PC and phone maker reports "best quarter ever" with $205 million in profit
Lenovo has reported the most profitable financial quarter in its history, while outpacing Western rivals in revenue growth.
The Chinese PC and phone manufacturer grew profit 34% year-on-year to $205 million in the final three months of 2012 – smashing analysts' expectation of $178 million.
Total sales for company rose 12% to $9.4 billion. This was driven primarily by growth in its domestic market – sales in China rose 17% to $4.1 billion. Its Chinese mobile phone business was especially bouyant, growing 77% to $998 million.
Lenovo claimed that it was the fastest growing PC manufacturer for the 13th consecutive quarter. Laptop shipments grew 9.5% year-on-year, even as industry-wide shipments dropped 8.6% and desktop PCs shipments increased 5.8%.
Speaking to Information Age earlier this week, Lenovo's VP for UK and Ireland Marc Godin said the company's success derives from its spread of products and markets. "We don't have a particular dependency on one particular segment, market or country, meaning we are nicely balanced across the world," he said.
"We want to differentiate ourselves by providing a wide range of products, not betting on one form factor versus another," Godin said. "We've broken a number of rules on what a desktop should be, simply because we went out thinking creatively and innovatively."
Lenovo, which acquired IBM's PC business in 2004, recently announced that it will divide its business lines into a mainstream commercial unit and a high-end consumer and enterprise division, which will carry the Think brand.
The Chinese company was recently rumoured to in the running to acquire BlackBerry maker Research In Motion. It dismissed the rumour as "not accurate", however CFO Wong Wait Ming said the company was looking for "acquisition opportunities in many product lines".