Staggering Financial Results from Lenovo

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ThinkPad Laptop manufacturer Lenovo has ended its financial year with an amazing set of figures with revenue, profits, and PC shipments all up.

Lenovo said that for the quarter ending March 31st profits payable to shareholders grew 133% to $140 million from the same period a year ago. That also includes $36 million in net profit from the sale of its discontinued mobile business. Earnings per diluted share were $1.44, up by 112%.

Revenues for the three-month period were up 13% to $3.7 billion.

Chinese based Lenovo said that worldwide PC shipments grew 21 percent, ahead of the industry average growth rate. Laptop sales, led by the ThinkPad brand, outpaced desktops for the quarter, with notebooks making up 61 percent of total sales versus 38 percent for desktops. Notebook shipments were up 38 percent, while desktop shipments were up 9 percent.

Lenovo’s business in China amounted to 34% of sales during the quarter, while its Americas business accounted for 27 percent, slightly ahead of Europe, the Middle East, and Africa. Sales in Asia-Pacific accounted for 15% of sales. Shareholders are likely to be delighted with these figures. Notebooks made up 61% of total computing sales in the last quarter, up 38-percent from the year before, which Lenovo are crediting to increased general demand for portable devices and a larger range including the ThinkPad X300.

Lenovo ThinkPad

We think that Lenovo’s staggering success with the ThinkPad range has contributed a huge amount to their increased sales in the US and Europe. Not only have they taken over stewardship of an iconic brand, they have actually vastly improved the product.

Probably more importantly and equally as surprising is the way these guys have marketed themselves. They are starting to emerge as the Brand to beat and the ‘must have product’ in the mobile computing space. And they are certainly showing the mighty Apple marketing machine how to do things.

They definitely do not run scared of taking any of the leading brands on. With the release of the new IdeaPads, the superb ThinkPad X300, and a plethora of new releases slated for midyear it certainly seems as if Lenovo is taking the high ground.

Dell and HP and better watch their step because it’s our guess that the boys in Beijing won’t be happy until they have taken that number one slot!