A strong performance in emerging markets has helped Lenovo beat estimates and continue to defy the general trends in the PC market delivering growth in both its desktop and laptop categories.
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There was a fly in the ointment with the vendor warning that its recent acquisitions of IBMs x86 server business and Motorola Mobility would have an impact on profitability as it integrated and strengthened those parts of the business.
For the vendor's third fiscal quarter revenue increases by 15% to $10.79bn, with the vendor breaking through the $10bn barrier for the first time, and net profit improved by 29% year-on-year to $265.3m
Desktop sales increased by 12% and laptops were also up by 11% and Lenovo also sold large numbers of smart phones and tablets underlining its long term strategy to move away from reliance on the PC market as part of its PC Plus strategy.
“Lenovo had outstanding performance last quarter, delivering both record revenue and record profit. Leveraging strong execution of our strategy, innovative products and growth in our PC Plus business, we continue delivering on our commitment to improve our profitability and we are confident we will maintain this momentum in our existing businesses,” said Yang Yuanqing, Chairman and CEO of Lenovo.
“The Motorola and IBM server acquisitions that we just announced are a perfect fit with our PC Plus strategy. While our top priority now is full participation in the regulatory approvals process, I am confident that from day 1 after closing, these businesses will quickly begin contributing to our performance and develop into pillars for long-term, sustainable growth," he added.