Lenovo Rides Enterprise Upgrade Cycle, China to Strong Third Quarter

| About: Lenovo Group (LNVGY)

Lenovo (OTCPK:LNVGY) delivered strong fiscal third quarter results as it gained share in China and rode the ThinkPad as corporate PC upgrades continued.

The PC maker delivered strong growth and maintained its global market share at 10.2 percent. Lenovo checked in with 32.2 percent market share in China. Meanwhile, Lenovo continued to gain ground in emerging markets.

Lenovo’s strategy is to protect its market share in China and established markets while aggressively pushing into emerging markets.

Here’s a look at Lenovo’s China share.

And emerging markets.

The company reported fiscal third quarter net income of $100 million , or 98 cents a share, on revenue of $5.8 billion, up 22 percent from a year ago. Those results were in line with expectations. Lenovo CEO Yang Yuanqing said the company was focused on building its global brand and tackling the mobile market. Yuanqing also indicated that the corporate PC upgrade cycle is likely to continue.

By the numbers:

  • Lenovo had $2.7 billion in third quarter sales from China, up 18 percent from a year ago.
  • Emerging markets accounted for $1.1 billion in sales, up 34 percent from a year ago.
  • The U.S. accounted for $2 billion in third quarter sales, up 22 percent from a year ago.
  • Laptops accounted for 59 percent of Lenovo’s total sales.
  • Lenovo Mobile had sales of $218 million. Lenovo added that it is past supply constraints for devices like it’s LePhone.

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