Lenovo profit beats expectations, helped by remote working trend

    Lenovo strengthened its lead in PCs with 25.7% of the market, ahead of HP Inc and Dell Technologies which had 21.6% and 15.2% share, respectively.
    By: REUTERS
    | Updated on: Nov 03 2020, 15:48 IST
    According to research firm Gartner, worldwide shipments of personal computers rose 3.6% in the July-September quarter
    According to research firm Gartner, worldwide shipments of personal computers rose 3.6% in the July-September quarter (REUTERS)
    According to research firm Gartner, worldwide shipments of personal computers rose 3.6% in the July-September quarter
    According to research firm Gartner, worldwide shipments of personal computers rose 3.6% in the July-September quarter (REUTERS)

    China's Lenovo Group, the world's biggest PC maker, posted a better-than-expected quarterly profit on Tuesday and said it is continuing to benefit from "new normal" remote working after COVID-19.

    The Chinese giant said it set new records for group revenue, pre-tax income and net income, and all three key business groups delivered year-on-year growth for the first time in six quarters.

    "Last quarter was what I would call a perfect quarter for Lenovo," Chairman Yang Yuanqing told Reuters in a post-results interview.

    "I hope the current quarter could be even better." he said.

    ALSO READ: Canalys predicts a healthy shipment growth for wearable bands, TWS in 2021

    Lenovo reported a 53% jump in net profit for the quarter ended September to $310 million, beating average analyst estimate of $224 million, according to Refinitiv data.

    Revenue increased 7% to $14.5 billion.

    With the pandemic forcing companies worldwide to seek work-from-home options and people preferring to stay indoors, the company expects to benefit from increased sales of PCs and tablets.

    "Our gaming PCs and our thin-and-light PCs actually grow margin faster than other products," said Yang.

    ALSO READ: Global smartphone market grew 32% in Q3 2020: Counterpoint

    According to research firm Gartner, worldwide shipments of personal computers rose 3.6% in the July-September quarter, due to home entertainment and distance learning needs, along with the strongest growth the U.S. PC market has seen in 10 years.

    Yang predicted a further 5% to 10% industry-wide increase of total addressable market for PCs next year.

    Yang said a component supply shortage, particularly for display and integrated circuit, is keeping the company from meeting 100% customer demand.

    "The issue is not demand, it's supply. If we can fill enough supply, we can sell more products," he said.

    Follow HT Tech for the latest tech news and reviews , also keep up with us on Twitter, Facebook, and Instagram. For our latest videos, subscribe to our YouTube channel.

    First Published Date: 03 Nov, 15:48 IST
    Tags:
    NEXT ARTICLE BEGINS
    keep up with tech