World's No. 1 PC player continues to kill it
It's been a few quarters since Lenovo shoved Hewlett-Packard aside to become the leading PC maker in the world (in terms of shipments), and whatever the Chinese OEM is doing, it seems to be working. Lenovo on Thursday announced record results for its third fiscal quarter ended December 31, 2013, noting that it generated $10.8 billion in revenue. That's a 15 percent year-over-year increase and also marks the first time Lenovo's topped the $10 billion mark.
To put things in perspective, Lenovo said it shipped a record 32.6 million devices during the quarter, which is nearly 5 devices every second. Not all of those were mobile devices. In fact, Lenovo's desktop PC shipments grew -- yes, GREW! -- 9.1 percent year-over-year. By Lenovo's count, its share of the desktop PC market grew by 2 share points to 18 percent. In addition, Lenovo said its laptop sales contributed the most to its revenue, generating 50 percent of the money it made.
That said, combined shipments of smartphones and tablets came to 17.3 million, surpassing the 15.3 million PCs Lenovo sold during the quarter. Lenovo's tablet shipments reached a record high 3.4 million units, up over 300 percent compared to the same quarter a year prior. The OEM credited its Yoga Tablet for the spike in shipments.
"Lenovo had outstanding performance last quarter, delivering both record revenue and record profit. Leveraging strong execution of our strategy, innovative products and growth in our PC Plus business, we continue delivering on our commitment to improve our profitability and we are confident we will maintain this momentum in our existing businesses," said Yang Yuanqing (PDF) , Chairman and CEO of Lenovo. "Further, the Motorola and IBM server acquisitions that we just announced are a perfect fit with our PC Plus strategy. While our top priority now is full participation in the regulatory approvals process, I am confident that from day 1 after closing, these businesses will quickly begin contributing to our performance and develop into pillars for long-term, sustainable growth."
Lenovo spent big last quarter on the Motorola and IBM server acquisitions, but it also posted a net profit of $1.36 billion, up 15 percent year-over-year.