Lenovo net profits up 22pc in Q3 – outpaces industry growth

17 Feb 2011

A ‘Protect and Attack’ strategy embraced by Chinese computer giant Lenovo has served it well, with Q3 revenues of US$5.8bn resulting in a gross profit of US$648m.

The computer giant is possibly a poster child for the surge of China’s economy and the company is the fastest-growing company out of the top 5 PC manufacturers worldwide.

The company’s market share in China alone is 32.2pc and it is growing at three times the industry rate.

Worldwide market share for Lenovo at the end of the quarter was 10.2pc.

China’s not so sleeping giant has plans for the digital home

In recent weeks, Lenovo announced a joint venture with NEC Corporation in Japan and separately, a new mobile internet business group.

The joint venture with NEC forms the largest PC group in Japan, and establishes Lenovo as the leader in two out of three of the largest PC markets in the world. Lenovo’s new Mobile Internet and Digital Home business group will focus on creating mobile internet devices, including tablets and smartphones, as well as devices for new categories like cloud computing, smart TV and the digital home.

“By executing our ‘protect and attack’ strategy, we were able to grow across all regions, product types and customer segments,” said Lenovo CEO Yang Yuanqing.

“Our core PC business continues to deliver balanced growth. At the same time, we saw great momentum in our mobile internet business, which doubled the sales of the Lenovo smartphone from the previous quarter.

“This growth was driven by investments in marketing, product development and the creation of a new, more focused Mobile Internet and Digital Home business group.

“We will invest in building our global brand, driving more product innovation and creating an even more efficient end-to-end business model. Based on this, we are confident we can continue to outgrow the market and deliver strong results across our business,” Yuanging said.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years