Published in News
Lenovo hits record $205m Q3 profit
by Fuad Abazovic on30 January 2013
Tablets and phones in China profitable
Lenovo is apparently doing fine as it has proclaimed itself the fastest growing PC maker for the last 13 quarters and with the record net announced in Lenovo’s fiscal Q3 2012 report, one can only conclude that things are looking up for the Chinese giant.
Lenovo finished its third quarter on December 31st 2012 and saw a $205 million net profit on top of $9.4 billion sales. This is 12 percent better than the year before, while third quarter profit is 34 percent better than a year before. Gross profit increased 15 percent year-on-year to $1.1 billion, while operating profit climbed 26 percent to US $243 million.
Despite being famous for its business PCs and notebooks, including the legendary ThinkPad, it turns out that Lenovo made a lot of money from worldwide tablet sales and smartphone sales in China. Lenovo thinks we are in a PC plus era rather than post PC era, and it is jumping on the mobile bandwagon. Selling PCs, notebooks, tablets and phones seems to be a very profitable combination for the company.
In the meantime Lenovo is working to restructure into two groups, the Lenovo Business Group and Think Business Group, where the first should cover mainstream products, while the latter should focus on the high-end segment of the market.
Lenovo obviously benefitted from the fact that Dell did not do all that well and the same goes for other competitors, who failed to adapt to recent changes in the market. However, back at CES 2013 we had a chance to see some impressive convertible designs form Lenovo including many Yoga, Thinkpad Helix notebooks that are actually better described as convertibles. They can be both tablet and notebooks and you can find some details about them here. Lenovo is still trying to innovate and reinvent itself, and for the first time its efforts in the tablet and smartphone space are starting to pay off.