Lenovo has reported a 23% jump in net profit for Q2 2014 as laptop sales outperformed industry average.
For the three months to June, net profit rose to $214 million. Revenue in the same quarter jumped 18% from the previous year to $10.4 billion.
Lenovo’s core business lies in personal computers and accounts for 49% of total revenue in the quarter to June.
Laptop sales rose 12% in that period, when the industry was in a downturn.
The world’s biggest maker of personal computers said the PC industry saw a 3.7% decline in laptop shipments for the three months to June, when compared to the same period last year.
The latest figures indicate Lenovo has maintained its status as market leader for PCs, with a higher global market share of nearly 20% when compared to last year.
Lenovo has reported a 23 percent jump in net profit for Q2 2014 as laptop sales outperformed industry average
In a statement which accompanied the earnings release, Lenovo Chairman Yang Yuanqing said: “This has been a quarter of milestones for Lenovo – record PC share, a number three ranking in worldwide tablets for the first time and an even stronger number four global smartphone position.”
Lenovo has been making moves to diversify away from the shrinking global PC market. Its “Mobile Device Business” includes smartphones and tablets.
For the first time ever, Lenovo said it had sold more smartphones than PCs, with a record volume of 15.8 million units. That is a 39% gain from the previous year.
Yang Yuanqing also said: “As the PC industry recovers, the smartphone market continues its shift from premium to mainstream, and our acquisitions of Motorola Mobility and IBM x86 proceed toward completion, we see even more opportunity to keep growing rapidly.
“Lenovo continues to outperform the market and meet our commitments to improve profitability in our core businesses, while building strong pillars for future growth across our entire portfolio.”
The company has been on an acquisition spree. Earlier this year it struck a deal to acquire IBM’s low-end server unit.
Lenovo is also in the process of acquiring Motorola’s handset business from Google.
Both deals are awaiting regulatory approval, which analysts say could come as early as the third quarter of this year.
The New Year has started with a bang at the ever-popular International Consumer Electronics Show (CES), which takes place in Las Vegas every year. It might only be January but technology companies everywhere have already revealed some of their most prized gadgets from lightweight ultrabooks to hybrid laptops, so what have we go to look forward to over the coming year?
Revolutionary convertibles and laptops
If you’re a fan of highly portable devices with exquisite capabilities, you’re in luck. Multinational technology company Lenovo used the trade show to display a host of convertibles and laptops that are sure to get your blood pumping. That’s right, as well as Lenovo’s quirky little ThinkPad 8 tablet which sports an 8.3 inch 1080p display, boasts a quad-core Intel Bay Trail processor, can be used with a keyboard base and handles Windows 8.1 with ease, you can also get hold of slightly larger gadgets such as the detachable Windows 8 hybrid Miix 2. Ideal for anyone who enjoys the portability of a tablet and the reassurance of a laptop, this multi-functioning invention has it all and is great for both business and pleasure. Consumers can also get their hands on Yoga 2 (an updated version of the original IdeaPad Yoga) as well as a new version of the Flex, the Flex D series.
What’s more Lenovo have also paid homage to traditional notebooks with both the Z and Y series boasting sleek and efficient 14 and 15.6 inch models. While the Z series includes a host of breathtaking features including an Intel Core i7 processor, optional 1080p display, optional Nvidia 840 graphics and an impressive 16GB of RAM if needed, the Y series is sure to capture the interest of gamers everywhere. The latter comes complete with an Intel Core Processor, Nvidia GTX or AMD Radeon R9 M270 graphics and 3840×2160 display, which makes for a great gaming experience.
Futuristic mock-ups and concepts
As well as impressive designs that are sure to improve the world of computing, CES has also seen a host of headline-grabbing concepts including bendable TVs. Yes, you heard right. This year, Samsung not only announced two series of LED LCD curved TVs, which got people talking but they also showed off a rather swanky bendable TV. The demo model was an 85-inch LED LCD with 45 resolution and had the ability to transform from a flat screen to a curved screen with just a push of a button – pretty cool huh? One can only imagine what such a device would cost as no price was given. Other futuristic designs included BMW’s driver-less car, which not only had the ability to detect the presence of objects but could also steer, accelerate and break without any human intervention. Amazingly, the system can even counter-steer if the car slips on a wet road to prevent it from doing a 180. Made up of a Lateral Control Unit and a Longitudinal Control Unit, each played its part to determine the motion of the vehicle and are central to autonomous vehicles.
Every year, exciting developments come from CES and it seem like 2014 is no different so keep a look out for these outstanding creations.
Lenovo shares have dropped by as much as 15% as investors question its recent acquisitions.
Last month, Lenovo, the world’s biggest PC maker, struck two major deals totaling about $5.2 billion.
It bought IBM’s low-end business server for $2.3 billion, and a week later purchased US mobile phone company Motorola Mobility from Google for $2.91 billion.
Google had paid $12.5 billion for the Motorola handset business less than two years ago.
Investors had started selling Lenovo shares last week on news of the Motorola deal, due to questions surrounding Motorola’s profitability.
Lenovo shares have dropped by as much as 15 percent as investors question its recent acquisitions
The firm’s shares fell 8% in Hong Kong on Thursday ahead of the market’s closure for the new year holiday. When the market reopened on Tuesday they dropped more than 15% at one point, before recovering slightly to stand at 8.62 Hong Kong dollars.
Questions have been raised as to how Lenovo will integrate the acquisitions into its overall corporate strategy.
The Chinese company turned around IBM’s ThinkPad brand, and that was seen as key to Lenovo overtaking Hewlett-Packard as the world’s top PC maker in 2012.
In addition to Lenovo’s recent deals, there has been a report that the PC maker is in talks with Japan’s Sony to acquire its Vaio laptop business.
In a statement, Sony said: “The press report on a possible PC business alliance between Sony and Lenovo is inaccurate.”
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Lenovo has replaced Hewlett-Packard as the world’s top PC maker, according to preliminary figures released by research firm Gartner.
Gartner said Chinese PC maker Lenovo shipped 13.8 million units in the third quarter, compared with HP’s 13.55 million.
It said Lenovo’s “aggressive” price cuts had helped it gain substantial market share.
However, research firm IDC’s data put HP at the top, though it showed the gap between the two was closing.
According to IDC, HP shipped 13.9 million units, giving it a 15.9% share of the global market, compared with Lenovo which enjoyed a 15.7% share with 13.8 million units.
Analysts said Lenovo has been among the best performing PC makers in recent times and it was likely to gain further market share.
“Just the momentum that Lenovo has had, makes it inevitable that it will be the world’s number one PC maker across all charts,” said Andrew Milroy of Frost & Sullivan.
According to Gartner, Lenovo was the only PC maker, among the world’s top five, that increased its shipments to the US during the third quarter.
Both Gartner and IDC’s figures showed that global PC shipments fell more than 8% during the quarter, from the same period last year.
Demand for personal computers has been hurt by a slowing global economy as well as the growing popularity of tablet PCs such as Apple’s iPad and Samsung’s Galaxy range.
Analysts said that consumers held back on purchases during the period in anticipation of the launch of new products as well as operating systems, including Microsoft Windows 8.
“PCs are going through a severe slump,” said Jay Chou, senior research analyst at IDC’s Worldwide PC Tracker.
“The industry had already weathered a rough second quarter, and now the third quarter was even worse.”
He added that the industry was also struggling to find a product that may help it turn around its fortunes.
“The hard question of what is the <<it>> product for PCs remains unanswered. While ultrabook prices have come down a little, there are still some significant challenges that will greet Windows 8 in the coming quarter.”