Lenovo Q3 net jumps 30%, bets big on APLA region, smartphones

Lenovo

Buoyed by growth across geographies, Lenovo Group today posted 30 per cent jump in net profit for the October-December quarter, saying that it is confident of maintaining 20-30 per cent growth rates in the near future as its smartphones sales gain traction across emerging markets.

Lenovo, whose Executive Committee met here for the second time, said its net profit grew to USD 200 million in the third quarter of 2012-13, compared to USD 154 million in the same quarter last year.

"Lenovo has been the fastest growing PC company for 13 consecutive quarters. We registered good results across geographies in a difficult market that was down 7.8 per cent year-on-year...high growth opportunities, emerging markets and global consumer products segment like smartphones and tablets -- continued to deliver results," Lenovo CFO Wong Wai Ming told reporters here.

The company registered 12 per cent increase in sales to USD 9.3 billion in the reported quarter, from USD 8.3 billion in year-ago period.

"Our goal will always be to outgrow the industry. Our goal would be to maintain 20-30 per cent growth rate in the next few years," Ming said.

Lenovo's smartphone and tablet businesses have delivered "hyper growth" and its worldwide tablet and China smartphone business became profitable this quarter, he added.

Revenues from China stood at USD 4.06 billion, while that from Asia Pacific and Latin America (APLA) were USD 1.66 billion, Europe, Middle East and Africa (USD 2.30 billion) and North America (1.32 billion).

During the quarter, Lenovo's worldwide PC shipments grew to record 14.1 million and its global market share stood at 15.9 per cent.

"We are now focussed on the PC-plus era as the future belongs to devices like smartphones and tablets. In a short period, we have seen strong sales (of smartphones) in China and we hope to see similar traction in emerging markets like Indonesia, Philippines, Vietnam and India, where we launched these devices," Lenovo Senior VP and President (Asia Pacific and Latin America) Milko Van Duijl said.

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