Lenovo continues march on PC market
Computer giant Lenovo Group plans to seize more than a 20 per cent share of the mainland's nascent market for media tablets this year, despite being hard-pressed to meet local demand since launching its LePad device in March.
The world's fourth-largest supplier of personal computers also announced that it was on track to launch its joint venture with NEC Corp in Japan in July, after reporting a 223 per cent increase in net profit in the quarter to March.
Chief executive Yang Yuanqing said yesterday that Lenovo, 'for the sixth consecutive quarter', grew faster than its top competitors in the personal computer market, raising its global market share to 'an all-time high of 10.2 per cent' for its fiscal year to March.
The Hong Kong-listed company's net profit in its fiscal fourth quarter reached US$42 million, up from US$13 million a year earlier, on the back of what market research firm Gartner noted as 'strong growth across all regions' worldwide and a 16.6 per cent year-on-year improvement in total shipments to 8.14 million units. That gain surpassed the average US$36.7 million net profit forecast by 23 analysts polled by Thomson Reuters.
Lenovo's fiscal fourth-quarter revenue rose 13 per cent to US$4.9 billion from US$4.3 billion the previous year.
Sales in its core mainland operations was up 12.3 per cent year on year to US$2.2 billion, accounting for 45 per cent of total revenue worldwide.
Those results capped what chairman Liu Chuanzhi described as a 'record-setting year' for the company six years after it acquired the personal computer business of International Business Machines Corp.
Lenovo's net profit for its fiscal year to March more than doubled to US$273 million from US$129 million a year ago. Total revenue rose 30 per cent to US$21.6 billion from US$16.06 billion in the previous fiscal year.
'Lenovo was the largest PC supplier in emerging markets, including China; the largest in education and government notebook PC market segment; and the second-largest in the worldwide commercial notebook PC segment,' Yang said.
The Beijing-based company's Lenovo Mobile business, which handles its handset and media tablet operations, posted sales of US$804 million in the year to March.
'We are confident that LePad will secure more than 20 per cent market share in China this year,' Liu said. He noted that supply has been short in the face of strong demand, which he attributed to the Android operating system-based tablet's Chinese-language interface and easy-to-use functions.
Lenovo will launch its new Idea tablet for consumers and Think tablet for companies to international markets this summer.
Chief financial officer Wong Wai-ming said Japanese government approval of the Lenovo-NEC venture has recently been received, which puts its launch date on July 1.