Chinese PC maker Lenovo Group experiences strong growth during this year’s second quarter, celebrating net profits of $168 million. This 21 percent rise in net profit is a significant boost from last year’s $139 million and analyst’s estimate of $118 million.
What contributed to these high returns?
An increasingly diverse product mix targeted towards premium, commercial PCs, as opposed to consumer PCs, is a strong factor.
“The Group remains confident in its core PC business, and aims to grow at a premium to the market in revenue without compromising profitability,” Chairman and CEO Yang Yuanqing said in a filing to the Hong Kong Stock Exchange. “Lenovo will leverage industry consolidation opportunities, and drive growth in high-growth segments such as gaming PCs, Thin & Light, Visuals, and workstations.”
This news comes shortly after industry tracker IDC announced Lenovo had recaptured its title as the world’s number one PC maker with a 23.7 percent market share. The company originally lost the position to HP back in 2017.
Recent data from global research firm Gartner shows global PC shipments are up 0.1 percent to 67.2 million units shipped in Q3 2018.
According to Gartner’s research, Lenovo retains the largest share of these shipments, largely in thanks to its commercial PC growth and lucrative partnership with Japanese IT equipment and services company Fujitsu.