Notebook sales drive Lenovo's growth

Vendor reports encouraging first quarter results and targets emerging markets

In its first results since offloading its mobile handset business, PC vendor Lenovo showed double-digit growth in both shipments and revenue during a “solid” Q1 2009.
Lenovo's worldwide revenue for the three months to 30 June was up 10 per cent to $4.2bn (£2.2bn), while net profit rose 65 per cent to $110.5m. EMEA revenue stood at $904m, 21 per cent of the total figure, and shipments in the region rose 26 per cent, well ahead of the worldwide rate of 14.6 per cent.

Global notebook shipments rose by a third and revenue grew seventeen per cent to account for 57 per cent of the total figure. Desktop shipments and revenues both rose three per cent and accounted for 41 per cent of all revenue.

Lenovo chairman Yang Yuanging said: “Despite a softening global economy, we delivered solid gains in worldwide sales, PC shipments and profits, achieving our seventh consecutive quarter of profitable growth with positive operating results in our international business.

"Looking forward, we will invest even greater effort and resources into the development of emerging markets and our consumer business, and ensure an effective execution of our strategies."

Chief executive William Amelio added: “In forging Lenovo’s worldsourcing business model, we set out to bridge East and West by creating a unique culture built upon a solid foundation of execution excellence. We are starting to reap major dividends from this strategy in terms of improved serviceability, margin and supply chain efficiency.

"As a result, Lenovo is growing across geographies and product lines, continuing to bolster its already strong position in both developed markets and, through our transaction-based sales model expertise, the fast-growing emerging markets, which today account for more than half of total sales.”