Chinese PC juggernaut Lenovo showed no signs of the wheels coming off its sales: its fiscal Q1 turnover jumped more than a third and profit growth wasn't far behind.
Turnover during the three months ended 30 June was up 35 per cent year-on-year to $8bn, and net income leapt 30 per cent to $141m. Operating profit climbed to $183m from the $123m recorded in the same period last year.
The world's second biggest shifter of computers has now outpaced its top four rivals, in terms of shipments, for eleven quarters and once again pulled a rabbit out of the hat: its unit sales are up 24 per cent in a global market that declined nearly two per cent.
"Although the economic environment is somewhat similar to the 2008-2009 downturn, Lenovo's results are much stronger because we have the right strategy and great execution," said chairman and CEO Yang Yanqing in a statement.
Lenovo has the trusty Think brand to rely on and a distribution channel that is firing on all cylinders after it committed itself to an indirect model and reduced the areas where its direct sales team plays.
Sales outside of China and the consumer and Mobile Internet Digital Home businesses were the "balanced pillars" that drove growth the hardest, said Yanqing.
In China sales grew below the company average, up 24 per cent year-on-year to $3.5bn - the slowest growth in six quarters. But it took 3.9 points of the PC pie from rivals to bag a 35 per cent market share.
Consolidated sales in Asia Pacific and Latin America grew 21 per cent year-on-year to $1.7bn and were up a whopping 62 per cent to $1.6bn in EMEA where Lenovo's integration of Medion bolstered numbers. Sales expansion in North America was more modest at seven per cent, but this was in a PC market that declined ten per cent year-on-year.
Laptops generated more than half (54 per cent) of revenues to $4.3bn, up 23 per cent on last year in a global market that was flat, and desktop sales jumped 26 per cent to $2.5bn as the market total fell four per cent.
The Mobile Internet Digital Home division, including smartphone sales, climbed to $587m. ®