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Lenovo posts record quarterly revenue and profit

By Ma Si | chinadaily.com.cn | Updated: 2020-11-04 11:26
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Yang Yuanqing, Lenovo chairman and CEO. [Photo provided to chinadaily.com.cn]

Chinese tech giant Lenovo Group announced a record revenue of $14.5 billion in the quarter ended in September, making a 7 percent year-on-year growth on the back of all businesses showing strong momentum.

Lenovo said its profit recorded even stronger growth, with record pre-tax income of $470 million, up 52 percent compared to the same quarter a year earlier, while net income also increased by 53 percent year-on-year to a record $310 million.

Yang Yuanqing, chairman and CEO of Lenovo, said: "Our record results this quarter reflect our ongoing commitment to meeting the needs of the rapidly growing work-, learn- and play-from-home economy. All of our core businesses delivered year-on-year growth, while our Software and Services revenue grew to a new record."

"As the world continues to adjust to the 'new normal', we are confident in the long-term growth potential of both devices and cloud infrastructure. We will continue to leverage our core competences of operational excellence and global/local footprint, while accelerating our service-led transformation to better grasp opportunities and drive sustainable growth," Yang said.

Lenovo said 2020 continues to be a year with multiple industry factors impacting supply and manufacturing, including the ongoing geo-political uncertainties, the global COVID-19 pandemic, and industry-wide component supply shortages driven by strong demand.

But it sees a positive outlook for the second half of the year, with the new global norm of work, learn and play from home driving long-term growth trends in device demand and cloud/infrastructure requirements.

The personal computer manufacturing giant also said it expects the total PC market to grow well beyond current analyst forecasts to closer to 300 million units in 2020, around 25 million more than the total available market last year.

Specifically, in the quarter ended in September, Lenovo's PC and Smart Devices reported revenues of $11.5 billion, up 8 percent year-on-year. Lenovo said that the strong quarterly performance help the company continue leading the global PC market with an overall share of 23.6 percent.

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