Personal computer manufacturer Lenovo has enjoyed a significant jump in profits in second quarter of the year.
The Chinese PC maker recorded a 23 per cent increase in net profit for the three months to June, rising to $214 million (£128 million). Revenue was also up 18 per cent on the $10.4 billion generated in the same period 12 months earlier. The driving force behind Lenovo's success was its laptop business which saw sales outperform the industry average.
At a time when the industry is in a downturn, Lenovo experienced a 12 per cent rise in laptop sales. The personal computer market has been shifting in recent with the rise of the tablet device giving consumers another choice. Many people see tablets such as the iPad as more convenient to use than a laptop as they can be moved pretty much anywhere and do not need to be plugged in, unless when charging.
However, despite this sway in buying trends, Lenovo has been prospering. The company stated that while the PC industry had experienced a 3.7 per cent decline in terms of laptop shipments in the three months to June, it still had been able to perform well.
Yang Yuanqing, chairman of Lenovo, said in a statement to accompany the earnings release: "This has been a quarter of milestones for Lenovo – record PC share, a number three ranking in worldwide tablets for the first time and an even stronger number four global smartphone position."
Lenovo's chairman went on to add that the smartphone market is continuing to shift from premium to mainstream and the company has needed to move with the times. It recently purchased Motorola Mobility and IBM x86 as it eyes further opportunities for expansion. Mr Yuanqing explained that as Lenovo continues to outperform the market, it is eyeing future growth across it entire portfolio.
Find up to date information on spread betting strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.