MORRISVILLE – Even as Lenovo has expanded its business over the years from one focused primarily on computers to servers and mobile phones, Chairman and CEO Yang Yuanqing has insisted that PCs remain the global tech giant’s “bread and butter.” The latest earnings report shows that statement is as accurate today as ever since Lenovo acquired IBM’s PC business nearly 15 years ago.
Lenovo says quartertly earnings increased 20 percent year-over-year with the PC group driving the growth.
Revenue rose 1 percent to just over $13.5 billion, which was just below analysts’ expectations, according to Reuters.
However. earnings at $202 million topped estimates of $199.59 million.
The performance came despite the lingering impact of the trade war between the US and China, where most Lenovo operations are based. Its two headquarters are located in Beijing and Morrisville.
Looking for a PC? Lenovo discloses scores of Black Friday deals early
“During the quarter we were pleased to see our growth momentum deliver continued solid financial performance amidst a complex and dynamic global trading environment,” Yang said in a statement.
“This success is a testament to our commitment to innovation, to our customers across 180 markets around the world, and to how the world continues to embrace our vision to deliver smarter technology for all.”
Lenovo noted that the company’s four geographical markets (Americas, China, Asia Pacific, Euope-Middle East-Africa) each reported “more than 20% of revenue.”
But the big driver for dollars is the PC and Smart Devices Group, which delivered $10.7 billion.
Not only that, the group’s margin on sales grew to 5.7 percent – a record for the company, Lenovo noted.
Images leak of Motorola’s folding Razr smartphone, creating lot of buzz for Lenovo
Lenovo remains the world’s top PC seller, ahead of HP and Dell. Device sales grew 7.1 percent over the same quarter in 2018. Data analysis firms note that Lenovo’s marketshare is some 24 percent.
However, revenue fell for its Mobile Business Group, built largely around its Motorola smartphone business.
And the Data Center Group, which is based in Research Triangle Park, saw its revenue decline nearly 14 percent. But Lenovo noted that the group jas been “narrowing losses” for nine consecutive quarters.
