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There's little doubt tablet PCs and smartphones are cannibalizing traditional PC sales. It's not the only factor that's caused a slump in PC sales, but the infatuation with mobile devices has certainly played a role. What's an OEM system builder to do? Well, in the case of Lenovo, the OEM adopted a "PC Plus" strategy, allowing it to cash in on the mobile craze while simultaneously making money on traditional PCs. This strategy has led to a record number of device sales, and if you're worried Lenovo is turning its back on desktops and laptops, check out these stats.
During Lenovo's second fiscal quarter, the OEM's laptop business was the largest contributor to the company's bottom line, generating 51 percent of its worldwide revenue. That translates into $5 billion from laptop sales, up 8 percent year-over-year, giving the company an 18.5 percent share of the market.
Meanwhile, Lenovo's desktop PC shipments grew -- yes, GREW! -- by 1 percent. Don't scoff, 1 percent growth is pretty good compared an overall industry average of a 6 percent decline. Sales of Lenovo's desktops did decrease by 3 percent year-over-year, but it still collected $2.7 billion from those sales, which works out to 28 percent of its total revenue.
"Lenovo not only remains the top PC company in the world, but is also already the number four player in both smartphones and tablets worldwide and continues growing rapidly. At the same time, we have achieved record revenue and record profit, and improved profitability significantly." said Yang Yuanqing, Chairman and CEO of Lenovo." We are optimistic about the industry’s outlook. Benefiting from corporate refresh and China market improvement, the PC market is recovering, and tablet growth continues shifting to mainstream and entry-level segments, as well as emerging markets. These are Lenovo’s strength areas. We are confident that we will capture these opportunities and continue our strong growth."
Combining all of its products, Lenovo sold a record 29 million units last quarter, or about 4 devices per second. Just as important, Lenovo once again has proven there's plenty of revenue to be generated by serving both traditional PC and mobile markets. In other words, the sky isn't falling on PCs, it's simply expanding to include new kinds of devices.