Lenovo has reason to crack open a bottle of bubbly heading into the holiday season. Reporting results for its second fiscal quarter ended September 30, 2011, Lenovo said its net earnings shot up 87.9 percent. Gross profit jumped 59.8 percent year-over-year to $948 million, and the company's net cash reserves now sit at approximately $4 billion. But what's really remarkable is how Lenovo defied the so-called post PC era.
We know better than think such an era exists at this point in time, but in case there was any doubt, Lenovo proved there's a lot of money to be made in PCs. In fact, Lenovo made good on its promise to overtake Dell as the world's second largest PC vendor in the second quarter, and did so just one quarter after being named the world's third largest PC vendor.
"Lenovo's performance this quarter was outstanding," said Liu Chuanzhi , Lenovo chairman.
That's understating things. Lenovo's worldwide PC shipments grew 35.8 percent year-over-year, which is seven times the industry average growth rate of 5 percent. Nothing new for Lenovo, as this is the tenth consecutive quarter the company has grown faster than the industry average, and eighth quarter in a row it has grown the fastest among the top four PC vendors, Lenovo said.
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