Mobile devices help Lenovo outpace market rivals

Lenovo has revealed record full-year revenue of US$38.7 billion, an increase of 14 percent year-over-year, as the company continues to outpace market rivals.

The PC manufacturer also revealed a record full-year pre-tax income of US$1.01 billion, up 27 percent year-over-year and record full year earnings of US$817 million, up 29 percent.

Lenovo expanded its number one position in PCs, adding 2.1 points of market share to post a record 17.7 percent total share for the full-year, representing five percent year-over-year growth, compared to an overall industry decline of 8 percent during this same period.

With 20 consecutive quarters of outgrowing the PC market, Lenovo continued to show it can post rapid growth in absolute shipment and in relative market share metrics, even in difficult markets.

When combining Tablets and PCs together to form the “PC + Tablet” category, Lenovo sold a record 64 million devices, up nearly 18 percent year over year, outpacing this market by more than 13 percentage points.

Lenovo posted record total device volume of 114 million, up 37 percent year over year – the 4th quarter in a row that the company sold more tablets and smartphones than PCs.

“The record sales and profits that we delivered last year prove that Lenovo can grow and deliver its commitments, no matter the market conditions,” says Yuanqing Yang, Chairman and CEO, Lenovo.

“Not only did we strengthen our leading position in PCs, but we gained three points in tablets by quadrupling sales volume and became the fastest growing major smartphone company in the world.

“This demonstrates our capability to manage both businesses that are already mature, as well as those that are shifting to maturity.

“Meanwhile, we are building new engines for growth in the enterprise and ecosystem.

“Through the combination of our existing and new businesses, Lenovo offers tremendous value to shareholders today, and our value will be even greater in the future.”

Gross profit for the full year was US$5.06 billion, an increase of 14 percent year-over-year. Gross margin was 13.1 percent, while operating profit for the full fiscal year was US$ 1.05 billion, a 32 percent increase year-over-year.

The company’s gross profit for the fourth fiscal quarter grew to US$1.24 billion, an increase of 18 percentyear-over-year. Gross margin was 13.3 percent. Operating profit for the fourth quarter was US$231 million, up 37 percent year-over-year, while earnings grew 25percent year-over-year to US$158 million.

Compared to an overall PC industry decline of 4.6 percent year-over-year in the fourth fiscal quarter, Lenovo grew shipments at a 15 point premium to the market.

Asia-Pacific:

In the Asia Pacific region, Lenovo achieved 15.6 percent PC market share in the fourth fiscal quarter, up 2.1points year-over-year.

While the regional PC market improved, only down slightly at 1.5 percent year-over-year, the Company grew its PC shipments across the region by 14 percent. Lenovo remained number one in Japan with tremendous shipment growth of 35 percent.

Consolidated sales across the region totaled US$1.7 billion or 19 percent of Lenovo’s worldwide sales, while operating margins went up 1.3 points to 2.7 percent.

Laptop PCs:

Consolidated sales for Lenovo’s laptop PC business worldwide in the fourth fiscal quarter increased 16 percent year-over-year to US$4.8 billion, accounting for 51 percent of the Company’s overall sales.

During the same period, Lenovo’s worldwide laptop PC shipments increased 12.9 percent, against the backdrop of an overall industry decrease of 5.8 percent.

Desktop PCs:

During the fourth fiscal quarter, Lenovo’s desktop PC shipment grew 6.8 percent worldwide year-over-year, against an industry decline of 3.1 percent worldwide.

Lenovo’s desktop PC consolidated sales for the same period increased 14 percent to US$2.7 billion, or 29 percent of the Company’s overall sales worldwide.

Smartphones:

Lenovo had solid shipments of smartphones, staying China’s number two smartphone maker, with rapid growth across all its Mobile Internet and Digital Home (MIDH) product lines.

During the fourth fiscal quarter, consolidated sales of MIDH rose 71 percent to US$1.3 billion year over year, or 13 percent of the Company’s overall sales.

The Company’s worldwide smartphone shipments grew 59.4 percent in the fourth quarter, outpacing the worldwide market by 28 percent.

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