Lenovo sales up 15% in fiscal first quarter
Income increased 64% to $123 million, Lenovo ranks third in worldwide PC shipments
PC manufacturer Lenovo has reported a 15% growth in sales for its fiscal first quarter, to end of June 2011.
The company recorded sales of $5.9 billion, with pre-tax income up 64% to $123 million.
Lenovo was the third largest PC manufacturer by IDC shipment figures, with shipments up 23.1% in fiscal Q1, and the company also grew fastest of all the top five PC vendors.
Laptop sales accounted for 59.8% of Lenovo's total sales revenue, with sales up 14% year-on-year, while sales of desktops were up 18%.
The company's Mobile Internet Digital Home (MIDH) business group, which handles its feature phone, smart phone and tablet devices, marked its first full quarter of operations, and helped Lenovo to increase total handset shipments by 34% year-on-year.
Emerging markets, which include the Middle East, contributed 17.5% of sales for the first quarter, at $1 billion.
Liu Chuanzhi, chairman of Lenovo said: "The Board is very satisfied with Lenovo's first quarter results. Since we adjusted our leadership team in early 2009, our business continues to climb and everything has been executed well according to our original plans.
"Our results show that Lenovo's acquisition of the IBM PC business has become a success. In future quarters, you will see clearly that we will take what we've learned from this acquisition and apply that knowledge towards our joint venture with NEC in Japan and our acquisition of Medion in Germany," he said.
"The solid execution of the successful "Protect and Attack" strategy fuelled Lenovo's strong performance in the past fiscal quarter that we have achieved record high in global shipments, revenue as well as global market share. At the same time, we outperformed the industry in all geographies, customer segments and product segments," said Yang Yuanqing, Lenovo CEO. "Over the past two years, we have placed emphasis on and invested significantly in our business growth. Our global market share has now reached double-digits and we have attained a double-digit share in a greater number of our strategic markets. Starting this year, we are advancing to a more balanced strategy of continuing to grow, while shifting our focus more on profitability."