The company reported $5.8 billion in consolidated sales, a 41 percent year-over-year increase, and a profit of $77 million, which is a 45 percent increase from the same period in 2009. On a worldwide basis, Lenvo said that their PC sales have increased by 33 percent.
Lenovo chairman Liu Chuanzhi said, “Lenovo continued to deliver excellent results, highlighting the balance in our business. In line with our ‘Protect-Attack’ strategy, the China, mature markets and emerging markets have all been growing steadily.”
He also added, “There are three aspects that the Board is particularly satisfied with, first: management’s visionary decision to increase investment in R&D and brand building, second: the leadership team, which is working effectively and efficiently, with good rapport, third: Lenovo’s culture of meeting commitments and taking ownership is being embraced and fully adopted by our employees worldwide. When a company has a solid leadership team, the right strategy, and a strong corporate culture, this company will be sustainable and enduring. Lenovo continues moving in this direction.”
The company has said that their notebook sales comprise more than 60 percent of their overall sales revenues. Compared to last year, this is an increase of 40 percent. Notebook sales themselves have increased 38 percent this year, which is fantastic compared to the average 13 percent industry growth rate. Lenovo also said that 33 percent of their sales were made up of desktop computers, which increased by 26 percent and is 5 percent ahead of the average industry growth. On a side note, Lenovo sold its 60-millionth ThinkPad notebook in October. Its popularity has definitely added to their sales numbers.
Lenovo has just been doing well in all aspects of their products. Obviously, their PC industry has been booming, but also in their first quarter, their new smartphones brought in over $217 million in revenues.
Unfortunately, Lenovo has not yet announced a date to ship their Android-based LePad tablet outside of the U.S. Many people are speculating that the company is waiting for the next revision of the Android platform before they ship their product globally.
“TBR believes Lenovo has delayed the release of the LePad tablet into the markets outside of China until Android’s new OS arrives in late 2011,” Emily Searles wrote in a research note. “The company said that it views the mobile device market as a marathon, not a sprint, and does not wish to rush into the market with a device that will not fully meet customers’ expectations. TBR believes even in the mobile device marathon, Lenovo will face consequences from providing its competition with a head start. By 2011 Samsung, Dell, and HP will have established tablet market share, and Apple’s iPad will have released its second version. Lenovo’s hesitation to release the LePad may reduce its opportunity, even if the wait means an upgraded OS. TBR believes the loss in revenue from late market emergence will be greater than consumer dissatisfaction from Android’s current OS.”
It’s great to see companies flourishing despite some of the economic difficulties. Lenovo is doing great, and hopefully the company will continue going in this direction. Once they release their LePad, I feel that their sales will just increase even more. The question is when this will really happen. I guess we’ll just have to wait and see. In the meantime, Lenovo should continue to flourish and grow, and their PC sales should do the same.