Lenovo announces its financial results for the second quarter, reaches the top spot in PC/Tablet market
Lenovo, the world’s largest PC manufacturer, released the financial results for the second quarter. It turns out the company is doing pretty good, totaling $10.5 billion quarterly revenue, an increase of seven percent compared to the same quarter last year. The pre-tax income amounted to $329 million, a rise of 24 percent year-on-year, while the earnings grew by an impressive 19 percent to $262 million. The gross profit grew by 15 percent year-over-year to $1.46 billion, with the gross margin residing at 13.9 percent for the second fiscal quarter. Furthermore, the company shipped 35.6 million smartphones, PCs and tablets globally.
“Lenovo had another strong quarter that saw excellent market share gains and profit expansion. Not only did we reach nearly 20 percent share in PCs, but we became #1 in the broader PC+ tablet market for the first time. In May, we set this as a two year goal, but achieved it in two quarters,” said Yuanqing Yang, chairman and CEO of Lenovo. “And in the last month, we successfully closed both our Motorola Mobility and IBM x86 acquisitions. With these two deals, we are now #3 in both businesses, but we are not satisfied. We will replicate our success in PCs by outgrowing the market to challenge the top two. Mobile and Enterprise are now our new growth engines, and over time, like PCs, they will become our profit pool as well.”
The company also announced that it’s now the top PC and tablet manufacturer with a 14.1 percent market share, an increase of 1.2 percent when compared to the previous year. The Chinese OEM has its name marked in the PC market as well, offering users with durable and good laptops. My colleague Michael has already shared his opinion on why Lenovo could be the future of Windows, you can read it here.
As far as the smartphone shipment is concerned, the company expanded by almost 38 percent year-over-year. The company has released a number of Android-based handsets in several markets, but there’s no official word if we’ll see a Windows Phone handset from the OEM.Further reading: Lenovo, Microsoft, PC