Fri, Aug 19, 2011 - Page 10 News List

Emerging markets boost Lenovo’s quarterly profits

AP, BEIJING

Lenovo Group (聯想), the world’s No. 3 PC maker, yesterday said its quarterly profit nearly doubled on strong emerging market sales.

The results come as Lenovo expands into mobile Internet, competing with Apple Inc and other foreign rivals, and in developed markets with an acquisition this year in Germany and a joint venture in Japan.

Profit for the three months ending June 30 was US$108 million, or US$0.01 per share, up 98 percent from a year earlier, Lenovo said.

Sales for fiscal first quarter rose 15 percent from the same period last year to a quarterly record of US$5.9 billion and global market share hit a high of 12.2 percent.

Lenovo, which acquired IBM Corp’s PC unit in 2005, overtook Taiwan’s Acer Inc (宏碁) this year to become the third-largest PC vendor, according to International Data Corp.

After spending the past two years focusing on expanding sales, Lenovo is changing strategy to give equal emphasis to profits, CEO Yang Yuanqing (楊元慶) said in a conference call with reporters.

“We will continue to invest in capturing growth in emerging markets while focusing on improving profitability,” Yang said.

Lenovo entered wireless Internet last year and has launched smartphones and Web-linked tablet computers in competition with Apple, South Korea’s Samsung Electronics Corp and Taiwan’s HTC Corp (宏達電). It unveiled a low-priced smartphone last week to target developing markets.

The company’s tablet shipments in China have lagged behind Apple’s popular iPad, but Yang said that was due partly to supply constraints. He said the company was aiming to achieve a 20 percent share in that market within a year.

Lenovo said PC shipments in Africa, Latin America and other emerging markets rose 45.7 percent in the latest quarter over a year earlier.

In China, which provides nearly half of Lenovo’s sales, PC shipments rose 23.4 percent in the quarter.

Shipments in North America rose 30.8 percent, while those in Japan were up 14 percent.

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