Menu
Lenovo sees profit growth sag in fiscal Q2

Lenovo sees profit growth sag in fiscal Q2

Lenovo became the world's top PC vendor during the quarter, according to research firm Gartner

Lenovo's net profit for the fiscal second quarter increased by only 13 per cent year-over-year, marking a shift from the high profit growth the company has previously seen.

For the fiscal second quarter ending on Sept. 30, Lenovo's net profit reached $US162 million. Revenue for the quarter was a record $US8.7 billion, a year-over-year increase of 11 per cent.

In its fiscal first quarter, Lenovo reported 30 percent year-on-year growth in net profit. Last year, the company saw profit growth almost doubling year-over-year in some quarters.

Lenovo has consistently reported solid growth in its product shipments despite slowing growth in the PC industry, and competition from Apple's iPad which has cut into sales of laptops.

The Chinese company increased PC shipments in the fiscal second quarter, and was named the world's largest PC vendor by research firm Gartner. Research firm IDC, however, still ranks rival HP as the top PC vendor with a slight lead ahead of Lenovo.

During the quarter, Lenovo reported that its PC shipments grew year-over year by 10.3 per cent. Lenovo has credited the growth to its "protect and attack" strategy, with the company maintaining its dominant position in China's PC market, while expanding into new emerging markets. In China alone, the company's revenue reached $3.9 billion, accounting for 44 per cent of Lenovo's global sales.

The company also saw growth in its Mobile Internet Digital Home group, which sells smartphones. The business group saw revenue reach $US718 million in the quarter, up 155 per cent from the same quarter last year. In China, Lenovo's smartphone shipments reached second place, behind Samsung, according to research firm Canalys.

Lenovo announced during the quarter it would begin selling smartphones in Indonesia, Philippines, Vietnam and India. Microsoft's Windows 8, which was formally launched only two weeks ago, could also help grow PC sales.

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags business issuesconsumer electronicssmartphoneshardware systemsdesktop pcsLenovolaptopsfinancial results

Upcoming

Slideshows

IN PICTURES: Nutanix's .NEXT channel event in Sydney (+20 photos)

IN PICTURES: Nutanix's .NEXT channel event in Sydney (+20 photos)

Nutanix recently held its customer and channel event, .NEXT, in Sydney. The event, held at the Sheraton on the Park saw attendance from more than 150 channel and technology partners and customers. It was the first in a series of events Nutanix is holding in A/NZ in August and September, the objective of which is to brief partners and customers on “what’s next” in the design and management of datacentre technology.

IN PICTURES: Nutanix's .NEXT channel event in Sydney (+20 photos)
IN PICTURES: EDGE 2015 sponsor debrief (+23 photos)

IN PICTURES: EDGE 2015 sponsor debrief (+23 photos)

Some of the sponsors of ARN's inaugural EDGE 2015 event got together at the ARN office for a debrieef of the event. Over some drinks and cheese, these attendees got an update on some key statistics that arose from the EDGE event and discussed potential topics and improvements that can be made at next year's event.

IN PICTURES: EDGE 2015 sponsor debrief (+23 photos)
IN PICTURES: ARN Distributor Roundtable, Sydney, 26.08.15 (+26 photos)

IN PICTURES: ARN Distributor Roundtable, Sydney, 26.08.15 (+26 photos)

ARN hosted a distributor roundtable at Cafe Del Mar in Sydney, at which attendees and their partners discussed the changing role of the traditional IT distributor. They spoke about the challenges of digital disruption, the blurring lines of the channel in the age of digital transformation, and examined the ever-evolving business models. This roundtable was sponsored by Distribution Central, Exclusive Networks, Rhipe, and Hemisphere Technologies. Photos by ARN Editorial Director, Mike Gee.

IN PICTURES: ARN Distributor Roundtable, Sydney, 26.08.15 (+26 photos)

iasset.com is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments