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Lenovo’s PC business marks eight straight quarters of growth
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Published onAugust 16, 2019
published onAugust 16, 2019
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Despite an industry trend of slowing PC sales over the past few years, Lenovo is posting its eighth consecutive quarter of revenue growth as its personal computer division has become responsible for much of the heavy lifting in sales.
Ina letter to investors,Lenovo announced that for its FY19/20 quarter the company reached $12.5 billion in revenue with a pre-tax income that more than doubled is year-over-year growth totaling $240 million and $162 million in net income. With returns doubling for the year, investors are should see earnings per share increase $1.37.
“This fiscal year kicked off to an excellent start. Once again, this quarter’s strong results provided solid evidence that Lenovo’s Intelligent Transformation is enabling the company to drive sustainable, profitable growth in today’s dynamic and changing world. Our persistent execution and operational efficiency allow us to bring our vision to life and deliver smarter technology for all,” said Yang Yuanqing, Lenovo Chairman and CEO.
As mentioned earlier, Lenovo’s growth seems largely propelled by the company’s PC efforts, to which the company makes a note in its investor’s letter.
In PCs, volume outgrew the market, which as a whole is experiencing a recovery, by over 13 points, and the group hit an all-time record PC market share of 24.9%. This means one in every four PCs built in the world is a Lenovo PC – cementing Lenovo’s position as the worldwide number one in PCs.
Lenovo is also slowly making inroads with both its Mobile Business Group (MBG) and Intelligent Devices Group both seeing pre-tax income growth to the tune of $100 million and $524 million respectively. Even though it seems as if Lenovo has all but given up on smartphones in the US, the company also highlights that the MBG division “will continue to maintain profitability and seek opportunities to drive profitable growth in new markets and new innovated products.”
Perhaps, in preparation of the looming trade wars the US has engaged in with several countries, Lenovo also bookended its investors call with a warning of increased prices on PC, smartphones and various IoT devices resulting in negative effects on the investors, the extent wasn’t clarified but presumably a hike in prices will undoubtedly slow down the company’s current growth.
Kareem Anderson
Networking & Security Specialist
Kareem is a journalist from the bay area, now living in Florida. His passion for technology and content creation drives are unmatched, driving him to create well-researched articles and incredible YouTube videos.
He is always on the lookout for everything new about Microsoft, focusing on making easy-to-understand content and breaking down complex topics related to networking, Azure, cloud computing, and security.
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Kareem Anderson
Networking & Security Specialist
He is a journalist from the bay area, now living in Florida. He breaks down complex topics related to networking, Azure, cloud computing, and security
