Lenovo profit growth sags in fiscal Q2
Nonetheless, Lenovo became world's top PC vendor during the quarter, according to research firm Gartner
IDG News Service - Lenovo said Thursday its net profit for the fiscal second quarter increased by only 13% year-over-year, marking a shift from the high profit growth the company has previously seen.
For the fiscal second quarter ending on Sept. 30, Lenovo's net profit reached $162 million. Revenue for the quarter was a record US$8.7 billion, a year-over-year increase of 11%.
In its fiscal first quarter, Lenovo reported 30% year-on-year growth in net profit. Last year, the company saw profit growth almost doubling year-over-year in some quarters.
Lenovo has consistently reported solid growth in its product shipments despite slowing growth in the PC industry, and competition from Apple's iPad which has cut into sales of laptops.
The Chinese company increased PC shipments in the fiscal second quarter, and was named the world's largest PC vendor by research firm Gartner. Research firm IDC, however, still ranks rival HP as the top PC vendor with a slight lead ahead of Lenovo.
During the quarter, Lenovo reported that its PC shipments grew year-over year by 10.3%. Lenovo has credited the growth to its "protect and attack" strategy, with the company maintaining its dominant position in China's PC market, while expanding into new emerging markets. In China alone, the company's revenue reached $3.9 billion, accounting for 44% of Lenovo's global sales.
The company also saw growth in its Mobile Internet Digital Home group, which sells smartphones. The business group saw revenue reach $718 million in the quarter, up 155% from the same quarter last year. In China, Lenovo's smartphone shipments reached second place, behind Samsung, according to research firm Canalys.
Lenovo announced during the quarter it would begin selling smartphones in Indonesia, Philippines, Vietnam and India. Microsoft's Windows 8, which was formally launched only two weeks ago, could also help grow PC sales.
- Troubleshooting Common Issues in VoIP Learn more about Voice over Internet Protocol (VoIP), including common VoIP metrics used, best practices in VoIP management and tips and tricks for...
- IDG Research Survey: Are you Paying Too Much for Your NMS? Feel like you're paying too much for network monitoring? You're not alone. This survey brief summarizes findings from research recently fielded by IDG...
- 2013 Network Management Software (NMS) Buyers Guide This white paper contains an independent comparison study of six different network management solutions and provides guidance on how you can choose the...
- Rightsizing Your Network Performance Management Solution: 4 Case Studies This white paper discusses challenges encountered as organizations search for the most cost-effective network performance management solution.
- Tips to Simplify Database Administration and Development Make your job easier while getting the most from the leading productivity tool for database professionals. Learn tips from Dell Software's Oracle® ACE,...
- E-Signature RFP Checklist Webcast If your organization is looking to adopt e-signatures, you may be overwhelmed by the number of providers that offer seemingly similar solutions. How... All Laptops White Papers | Webcasts