Lenovo has just released its latest quarterly results and besides the good news about its $8.8 billion in revenue and $170 million in profits, the company also announced that for the first time it generated more income from the sales of smartphones and tablets than from PCs! What is ironic about that is that Lenovo is the world’s largest PC vendor!
According to data released by Gartner and IDC, Lenovo shipped more PCs than any other company in the second quarter of 2013 – some 12.6 million units. Not only did it rank number 1 in PC sales ahead of HP and Dell but it also managed to grow its market share in a time when PC sales are taking a massive dive.
That makes it even more startling that sales of Lenovo’s smartphones and tablets has actually surpassed PCs. By Lenovo’s reckoning it is now the world’s fourth largest smartphone supplier and has achieved the fastest growth among the top five vendors.
The secret to Lenovo’s success is China, where it is now the second largest smartphone company. Lenovo China marked up US$3.7 billion in sales during the quarter which accounts for 42 percent of the company’s worldwide revenue. A large part of those sales where for smartphones and tablets, which together grew 76 percent when compared to last year.
Outside of China Lenovo’s smartphones aren’t so well known but its tablets can be found almost worldwide. To boost its smartphone sales outside of China, the company has started selling handsets, including the Intel powered K900, in Malaysia, Saudi Arabia, Thailand, and the United Arab Emirates.
With such diverse results it is clear why Lenovo no longer sees itself as a simple PC company. The phrase used by Yang Yuanqing, the chairman and CEO is that Lenovo is a ”PC Plus” company, his terminology for a tech company adapting to the post PC era.
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Good move …Lenovo..
Genuinely amazed at these figures / the article. Anyone know what the best selling Lenovo smart phones are though?
“During the first fiscal quarter, Lenovo’s Laptopcomputers were the
largest contributor to the Company’s revenue worldwide, generating 52
percent of Lenovo’s total revenue.”
I think they sold more smartphones and tablets than laptops but gained more revenue from selling laptops anyway.
And I haven’t even ever seen any Lenovo mobile devices! China is really the market where everyone should invest in if they want to make profit!
As Indonesian, yes, it is pretty clear actually. Lately people see Lenovo as popular alternate brand. Obviously I am talking about price range. At mid-range level, I find more Lenovo than any of HTC, Samsung or Sony. The most popular ones are:
For being the JB phone with “only” 270 USD price tag unlocked
http://www.gsmarena.com/lenovo_p780-5544.php or http://www.gsmarena.com/lenovo_p770-5140.php
for being the largest battery you’ll ever see.
No the popular ones aren’t the flagships such as k900, flagships market is still flooded with similar S4, Note 2, Z or One
Also you will find it impressive that even though the distribution is a disaster, the phones are selling like hotcakes, the P780, P770 and S890 are easily sold out in most stores. No we don’t have those 2 years contract c**p so all Indonesian phones are unlocked version sold at full price.
Well, Telkomsel sells iPhone 5 and Xperia Z Ultra with 2 years contract with Kartu Halo, and I think Indosat do the same. Yet they cost about Rp 300k~ till Rp 600k /month, similar price in America ;)
Nope, the only “true” bundling is iPhone, Android Smartphones only Promotional package, never a “true” bundling. Nevertheless, the fact remains that you’ll meet more people using Lenovo as mid-range phone compares to other more popular and bigger name. To say the least the S880, S890, P770 and P780.
8.8 billion in revenue but only 180 million in profit (2%). Is that something?
It seems most of Lenovo gain was from China where it got about 44% of its worldwide sale. In US, Lenovo only has 14%.
Using a Lenovo Phone.Great quality,no regrets choosing it over other brands.
I really wanted the K900, but sadly Lenovo delayed too much to at least announce soon availability. Bad. So, now I’m engaged with the Xperia Z Ultra, which it’s clearly much more powerful and has it almost all I want. But still, the K900 design remains unbeaten.
Who knows, maybe it’s not too late for it to arrive to Peru. I’ve heard Chile will have it this month.
For a company that wants to be big player, Lenovo has an awful track record when it comes to providing customer support…especially for its Android tablet customers. No OS updates, poor help when calling customer support. Their newest tablets A1000 series had major issues with not allowing users enough space to install but only a few apps. S6000 didn’t work with Netflix (both examples of poor Quality Assurance testing IMO). The Yoga might be cool, but I would recommend skipping Lenovo products until they get their act together…otherwise you will be heartbroken…take it from me a S2109 tablet owner that has been begging for a Jellybean update but all I get is the runaround or silence from Lenovo. Pay the extra,,,buy Samsung, Acer, ASUS..heck even Apple…just not Lenovo..at least not now.
i use samsung before had 2 flagship handset then i tried lenovo s820 men im loving this phone lenovo you rock, men