The unstoppable force that is Lenovo recorded double-digit sales and profit gains in fiscal Q2 as its operation in mature markets outweighed its homeland market in China for the first time.
The firm, which has locked onto market leader HP, grew sales by more than a third (35 per cent) to $7.8bn, operating profits were up more than 55 per cent to $166m and pre-tax income was up 62 per cent to $165m.
"In just two quarters, Lenovo has gone from the number four to the second largest PC vendor in the world," said CEO Yang Yuanqing.
In calendar Q3, Gartner stats showed that Lenovo grew PC shipments 25.2 per cent worldwide in a market that expanded by just five per cent - the tenth consecutive quarter that the manufacturer outpaced industry growth.
In China - which has surpassed the US as the world's largest PC market - Lenovo sales were up by more than 20 per cent to $3.2bn or 40 per cent of total revenues, in emerging markets turnover was $1.3bn, up by a fifth and in mature market sales climbed 61 per cent to $3.3bn.
Laptop revenues, 57.5 per cent of total sales, were up nearly 30 per cent in the quarter, as desktops increased 36 per cent to represent 34 per cent of turnover. The Mobile Internet Digital Home unit grew 40 per cent and accounted for the remainder of group sales.
Lenovo seems to have escaped the dark days following its acquisition of IBM's PC division, and has the backing of some large resellers after sorting out its channel conflict - improving its supply chain and dishing out much richer rebates.
Yanquing said he was “very optimistic about the future of the PC industry" in a swipe at HP, which only last week ended the uncertainty surrounding its Personal Systems Group.
"Our aspiration is not only to be the leader of traditional PCs, but to also accomplish much more in the extended PC categories, such as the smartphone and tablet," he said.
With tablet sales lagging behind Apple and smartphones yet to be released outside of China, Lenovo still its work cut out to broaden its portfolio. ®