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Lenovo hits record sales and profits for Q3

Company outperforms global PC market for 11th consecutive quarter

Lenovo hits record sales and profits for Q3
Lenovo has become the number one vendor of commercial PCs and consumer desktops, says Yang Yuanqing.

Lenovo has reported record sales and pre-tax income for its fiscal third quarter, to end of December 2011.

The company registered pre-tax income of $192 million, from revenues of $8.4 billion in the quarter. Net profit was up 54% year-on-year, to $153m.

It was also the 11th consecutive quarter that Lenovo has grown faster than the PC industry as a whole, with shipments up 37%. The company also recorded highest ever worldwide market share, of 14%, as per IDC figures.

"Despite the worldwide hard drive shortage in the past quarter, Lenovo continued to achieve strong growth with record results in market share and revenue, as well as record high in PTI (pre-tax income) of $192 million. For the first time, Lenovo became the number one vendor globally in commercial PCs and in consumer desktop," said Yang Yuanqing, Lenovo chairman and CEO.

"We saw strong progress in our Mobile Internet business. During the quarter, Lenovo sold more than 6.5 million phones, and almost half were smartphones. Lenovo's smartphone market share in China reached double-digit market share in December. We also see strong momentum in our tablet business. All these successes demonstrate that Lenovo has built a strong foundation for the next steps beyond traditional PCs," he added.

In its home market of China, the company hit an all time market share high, with 35.5% of the market, and said it had strong growth in emerging cities and rural areas.

In mature markets the company saw an 81% growth in sales, while in emerging markets, including the Mdidle East, sales were up 13%, to $1.3 billion.

Emerging markets contributed to 15% of the company's worldwide sales, with India, Latin America and Russia all showing strong performance.

By product category, laptop's contributed the most Lenovo's growth, with sales up 30% worldwide. Desktop sales were up 39% worldwide, while the company said it saw strong growth in its mobile and tablet products, particularly in China.

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