Lenovo seeks to grow sales of new gadget line
Mainland computer giant Lenovo plans to aggressively increase sales of its fledgling line of smartphones, media tablets and new smart television products after posting record revenue and market share gains in its last fiscal year ended March.
'We want to stay hungry, and deliver more market share and profit this [fiscal] year,' said chairman and chief executive Yang Yuanqing. 'With the emergence of multiple devices such as smartphones, tablets and smart TV, our industry is entering the PC+ era.' Lenovo, the world's second-biggest supplier of personal computers, yesterday reported a 59 per cent rise in net profit for its fourth fiscal quarter ended March 31 to US$67 million from US$42 million a year earlier on the back of balanced growth in all its geographic markets, customer segments and product lines.
Revenue climbed 54 per cent to US$7.5 billion from US$4.9 billion.
Yang pointed out that Lenovo was the world's fastest-growing personal computer company for the 10th consecutive quarter.
'We also furthered our leadership position in the global emerging markets, in which Lenovo already achieved double-digit market share in 15 markets and became number one in India,' he said.
Despite a global shortage of hard disk drives in the three months to March, the company's shipments rose 44 per cent to 11.7 million units from 8.1 million units a year ago, according to market research firm IDC. Lenovo achieved an all-time high global market share of 13 per cent that quarter.
For its full fiscal year, Lenovo's net profit jumped 73 per cent to US$473 million from US$273 million the previous fiscal year.
That compared with a consensus forecast of US$472 million from a poll of 29 analysts by Thomson Reuters I/B/E/S service.
Total revenue grew 37 per cent to a record US$29.6 billion from US$21.6 billion.
Lenovo's board of directors yesterday declared a final dividend of 10 Hong Kong cents per share for the past fiscal year.
Yang said Lenovo aims to triple the volume of its smartphones sales on the mainland, the world's largest market for mobile phones, in its current fiscal year to March.
The mainland also accounted for 42 per cent of the company's total revenue in its last fiscal year.
Bernstein Research had earlier forecast Lenovo to sell about 13 million smartphones in its current fiscal year to March, up from an estimated 6.2 million in the past fiscal year, due to a booming domestic market for 3G handsets in the US$100 to US$200 price range.
Lenovo does not sell handsets overseas.
Yang said Lenovo would collaborate with all three mainland telecommunications operators - China Mobile, China Unicom and China Telecom - to broaden the distribution of its handsets.
Lenovo's mobile internet and digital home business unit that manufactures and markets its smartphone, media tablet and smart TV products, accounted for 5 per cent of the company's total sales.