Lenovo seizes record share amid global PC market slowdown
Strong quarterly earnings numbers could be in the cards for Lenovo after it grew market share to remain the world's top supplier of personal computers in the three months to September, despite total industry shipments dropping to a five-year low.
In separate preliminary market estimates released yesterday, technology research firms IDC and Gartner said Lenovo's personal computer shipments rose about 2 per cent year on year in the quarter to 14.1 million units.
Lenovo, which operates in more than 160 countries, expanded faster than the overall personal computer market for the 18th consecutive quarter. The company also seized its highest ever quarterly market share, which IDC put at 17.3 per cent and Gartner at 17.6 per cent.
That was in contrast to the sixth consecutive quarter of declining shipments for the whole industry. IDC said the global market contracted 7.6 per cent year on year to 81.6 million units, while Gartner estimated an 8.6 per cent drop to 80.3 million.
But Angela Lee, a spokeswoman for Lenovo, said yesterday: "The PC industry still represents a US$200 billion opportunity and offers Lenovo substantial room for profitable growth."
In its fiscal first quarter ended June, Lenovo beat analysts' estimates when it reported a 23 per cent year-on-year increase in net profit to US$174 million on the back of growth in all its geographic markets.
Revenue climbed 10 per cent to US$8.7 billion, as it cornered a 16.7 per cent share of the global personal computer market that quarter.
In the quarter to September, Gartner said Lenovo's "strong growth in the Americas, as well as in Europe, Middle East and Africa, offset declining personal computer shipments in the Asia-Pacific market".
A report by Barclays predicted Lenovo would "continue growing sales year on year even amid a slow global PC demand environment".
It said the company's margins could keep "improving for the next several quarters".
Lenovo, which has its headquarters in Beijing and in North Carolina in the United States, is also the second-biggest smartphone supplier and No 3 media tablet brand on the mainland.
Its share price advanced 1.35 per cent to close at HK$8.23 yesterday.