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Strong laptop demand drives Lenovo net income more than 53% year over year
Lenovo Group’s Quarterly Report has a lot to say about the personal computer market as the company recently regained the top spot among the largest PC makers with a 23.6% share by IDC. Demand for thin laptops is up 49%, for gaming computers up 58%, for chromebooks up 125%.
Image source: Lenovo
The total revenue of Lenovo Group in annual comparison increased by 7.4% to $ 14.5 billion, but net income at the same time grew by 53.4% to $ 310 million, exceeding analysts’ expectations by a large margin. Revenue grew across all Lenovo Group business units, but personal computers and smart devices accounted for 79% of total revenue, so it should pay more attention.
Division PC and Smart Device (PCSD) increased its revenue by 8.8% over the same period last year, to $ 22.065 billion. The first fiscal half of the year ended on the thirtieth of September Lenovo calendar, the Chinese manufacturer characterized it with very high demand for personal computers. In the segment of thin and light laptops, demand grew by 32%, in the gaming segment, revenue increased by 66%, and Chromebooks were sold 59% more than in the same period last year.
Image source: Lenovo
Lenovo’s e-commerce revenue grows 47%, software and services revenue grows 42%. The smartphone market in the last quarter reduced Lenovo’s revenue by 13.3% to $ 2.6 billion, but the specific revenue from the sale of models with 5G support increased more than twice. Lenovo’s strategy is to expand 5G smartphones in all price segments.
Lenovo is optimistic about the second fiscal half of the year, which ends in March next year, as demand for hardware solutions for remote work is unlikely to weaken. At the end of the current calendar year, according to company representatives, the PC market may grow by 25 million products, approaching 300 million sold computers. Unfortunately, the increase in PC production is constrained by continued shortages of certain components, according to the largest manufacturer in the world.