Home / / Lenovo nets $14.1 billion in record breaking profits.

Lenovo nets $14.1 billion in record breaking profits.

Lenovo’s Software and services revenue reached US$1 billion for the first time, growing 41% year-on-year and contributing 7% of Group revenue alone.

Lenovo nets $14.1 billion in record breaking profits.
Lenovo
Lenovo's earnings overiew

Lenovo’s Software and services revenue reached US$1 billion for the first time, growing 41% year-on-year and contributing 7% of Group revenue alone.

Lenovo announced its third quarter revenue figures and recorded that it had hit $14.1 billion, in its tenth consecutive year. It also  saw its net income increase up to 11% to $258 million

“Last quarter, despite the geopolitical uncertainties and industry-wide supply shortages, we delivered a record-setting performance with geographical balance, operational excellence, and solid strategy execution. Both group revenue and pre-tax income reached all-time highs,” said Yang Yuanqing, Lenovo Chairman and CEO.

Lenovo considered these profits a win in their book considering current geopolitical events that are directly affecting technology companies across all verticals.

Lenovo’s Intelligent Devices Group set records for revenue at US$11.1 billion and retained its #1 position with high shipments, Lenovo also recently announced its ThinkBook Plus with top cover e-ink display, ThinkPad X1 Fold laptop with foldable screen and the world’s first 5G PC – Yoga 5G.

The Mobile Business Group (MBG), posted its fifth consecutive quarter of profitability. The recently launched Motorola razr signals a re-entry for the company to the premium segment – a market segment that will be an ongoing focus in the future.

The Data Center Group (DCG) saw server shipments grow by 18% year-on-year. While Data Center group revenue remained flat year-on-year due to sharp component price reductions that decreased average system prices, profitability continued to improve.  Non-hyperscale had its highest revenue in four years and grew nearly 16%, with the revenue from the China market alone up 46% year-on-year. Software Defined Infrastructure (SDI) and Storage have both seen year-on-year revenue growth of more than 40%.

Looking ahead, future growth is expected across all areas, in particular from servers, storage, SDI, High Performance Computing, software and services as the Group focuses on increasing customer diversity and broadening indirect channels.

Follow us to get the most comprehensive IT business news delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.