New | Lenovo on track to post strong 2014 earnings despite world market doldrums

Lenovo Group is poised for strong earnings in its financial year to March after widening its lead among the world’s top suppliers of personal computers last quarter, despite the overall decline in the industry.

In separate preliminary estimates released today, technology research firms IDC and Gartner said global personal computer shipments fell as the surge in corporate replacements – driven by Microsoft’s retirement of its Windows XP operating system in April last year – began to fade.

IDC said Lenovo, the world’s largest supplier of personal computers, grew its shipments by 3.4 per cent to 13.39 million units in the quarter to March. That provided the company with a 19.6 per cent global market share, up from 17.6 per cent in the same period last year.

Gartner calculated a higher 5.7 per cent increase to 13.58 million units, which gave Lenovo an 18.9 per cent share worldwide from 17 per cent a year earlier.

“PCs remain at the heart of our business, delivering 65 per cent of our revenue and record income last quarter [ended December 31] of almost US$500 million,” Lenovo chairman and chief executive Yang Yuanqing said in a statement to the South China Morning Post.

“Given industry consolidation, Lenovo’s consistent focus on innovation … and our ongoing momentum, we are confident that PCs will continue to be a great engine of strong, profitable growth.”