Menu
Lenovo's Q1 profit grows 25 percent on PC, smartphone gains

Lenovo's Q1 profit grows 25 percent on PC, smartphone gains

Lenovo's smartphone shipments continue to soar in China

Lenovo's net profit grew 25 percent year-over-year in the first quarter as the Chinese company continued to make gains in the PC and smartphone markets.

During the period ended March 31, Lenovo's net profit reached US$158 million, up from $127 million a year earlier. The company's revenue also increased, by 19 percent to $9.4 billion.

Lenovo has risen to become the world's largest PC company, helped by sales in its home market of China. But the company is also focusing on tablets and smartphones to grow revenue. For the fourth straight quarter, Lenovo shipped more tablets and smartphones combined than it did PCs, the company reported on Wednesday. Its mobile devices business contributes 13 percent of company revenue.

Most of those smartphones are sold in China, but the shipment volume is so high that Lenovo already ranks as the fourth largest smartphone vendor in the world, according to research firm IDC.

Lenovo's smartphone presence is set to expand soon. In January, the company announced it would buy Motorola Mobility from Google, giving it an entry into the U.S. market.

The Motorola acquisition will dampen Lenovo's earnings in the short term, the Chinese company warned in February. However, Lenovo is confident it can turn around Motorola's business once the purchase is completed.

PCs still make up the bulk of Lenovo's business, generating 80 percent of its revenue in the first quarter. During the period, Lenovo saw strong shipments in markets outside of China, especially in Europe, Middle East and Africa.

In the U.S. market, Lenovo for the first time became the market's third-largest PC vendor, surpassing Apple in shipments, according to IDC.

In January, it agreed to buy IBM's x86 server business and related maintenance services for $2.3 billion. The deal could make Lenovo a top player in the server market, according to analysts.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesconsumer electronicssmartphoneshardware systemsAndroiddesktop pcstabletsLenovolaptopsfinancial results

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments