Lenovo today reported results for its first fiscal quarter with revenue of US$10.4 billion, an 18 percent increase year-over-year. Earnings grew 23 percent year-over-year to US$214 million, while the Company hit market share and financial performance milestones.
Lenovo’s strategy to diversify away from the PC market came with the acquisition of IBM’s server unit and the Motorola handset brand in deals worth over $5 billion.
Lenovo maintained its number three ranking in smart connected devices growing shipments by 28 percent year-over-year. Lenovo has also maintained the top position as the world’s largest PC maker for five consecutive quarters with increased market share driven by healthy revenues in EMEA and the Americas.
In smartphones, Lenovo sold more smartphones than PCs for the first time ever with record volume of 15.8 million units and became the number 1 smartphone vendor in China with 13 million phones sold. In tablets, Lenovo became the 3rd largest vendor with 2.3 million devices shipped,
This has been a quarter of milestones for Lenovo – record PC share, a number three ranking in worldwide tablets for the first time, and an even stronger number four global smartphone position,” said Yuanqing Yang, Chairman and CEO of Lenovo.
As the PC industry recovers, the smartphone market continues its shift from premium to mainstream, and our acquisitions of Motorola Mobility and IBM x86 proceed toward completion, we see even more opportunity to keep growing rapidly. Lenovo continues to outperform the market and meet our commitments to improve profitability in our core businesses, while building strong pillars for future growth across our entire portfolio.
In Europe/Middle East/Africa (EMEA), Lenovo had an extremely strong quarter with revenue increasing 49 percent or US$921 million year-over-year to reach US$2.8 billion, or 27 percent of Lenovo’s first quarter worldwide revenue. EMEA saw record highs in PC share and operating margin, hitting the number one position in notebooks for the first time and achieving a number one position in 15 EMEA countries, while smartphone shipments surpassed 1 million devices for the first time. During the quarter, Lenovo’s PC shipments in EMEA increased 4.8 share points year-over-year in the quarter, to reach an all time high of 18 percent.
Full press release and figures here.
