Lenovo pumps up profits

Chinese PC giant Lenovo has reported a strong set of first half figures. Following its purchase of IBM’s PC division for US$1.25 billion, Lenovo announced that first half profits for the period ending September 2005 jumped 13% year-on-year to US$92m.

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By  Stuart Wilson Published  November 1, 2005

Chinese PC giant Lenovo has reported a strong set of first half figures. Following its purchase of IBM’s PC division for US$1.25 billion, Lenovo announced that first half profits for the period ending September 2005 jumped 13% year-on-year to US$92m. Lenovo’s sales rocketed skywards to US$6.2 billion — up from US$1.48 billion a year earlier — as revenues from the acquisition of IBM’s PC business unit were included in the top line numbers for the first time. The Middle East and Africa is a high priority for Lenovo as it looks to further strengthen the brand’s global footprint. Speaking at Gitex in September, Ravi N. Marwaha, senior VP worldwide sales at Lenovo, declared: “This company is all about leadership. This is a great company but our goal is market leadership and that remains our strategic focus.” “I am not interested in rival vendors looking over their shoulders at what we are doing, I am just totally focused on achieving market leadership. We will get to this position through customer satisfaction, innovation and quality,” he added. “I don’t want to put a date on when Lenovo will be the number one notebook vendor in the region, because whatever date I say, I hope we will do it much quicker than that.” Recent African press reports claimed that Lenovo is preparing to open a regional office in Nairobi, Kenya. Yushaa Matthews, sales manager at Lenovo South Africa, has declared that the vendor intends to make a direct investment in seven countries in Africa and will also examine the possibility of establishing an assembly facility in Africa. Lenovo is also looking to increase product stocking on the ground in Africa. Channel partners serving Africa for Lenovo include Sahara, Tricontinental, SDAL and Ibis. According to IDC, Lenovo ranked fifth in the third quarter PC vendor rankings in Europe, the Middle East and Africa (EMEA) with unit sales hitting 687,000 in the region.

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