Lenovo published its earnings results for the quarter ended June 30th on Wednesday and they are pretty impressive. The world’s largest maker of personal computers, Lenovo had an enviable quarter especially in the area of profit.
Profit jumped 119 percent to $466 million and is more than double the figure from the same quarter last year. The company recorded $213 million in the same period last year. It is pertinent to know that Lenovo’s profit earnings beat the expectations of several analysts, at $466 million it was well above the average expectation of $345.23 million.
For revenue, analysts expected $16 billion. Lenovo’s revenue result stood at $16.9 billion and was up 27 percent from $13.3 billion from the same period a year ago.
According to Lenovo, the impressive results stemmed from increasing demand from workers who were operating from home, a recovery in IT spending, and higher average selling prices of its products. The company also announced that it expected that the total personal computer market size would continue to grow over the next five years. The company’s chairman and CEO Yuanqing Yang, in a statement, said that “the accelerated digital and intelligent transformation has created significant market opportunities globally. Going forward, we will continue to increase R&D investment, aiming to double it over the next three years.”
The company reorganized its business groups in February, a strategic move and the results come as the first earnings after the strategic move.
According to Canalys, Lenovo sold more than 20 million units for the third consecutive quarter, extending its market share to take 24.4 percent of the market share. Its major competitors HP Inc and Dell hold 22.6 percent and 17 percent respectively.
Although Lenovo’s demand was boosted by at-home workers, the pandemic-driven consumer demand for personal computers is slowly declining, according to analysts. 82.3 million units of personal computers were sold in the second quarter of 2021 globally, the figure is up 13 percent from the same period last year.
Headquartered in China and the US, Lenovo remains one of the biggest computer makers in the world.