Lenovo sales boost! The profits are increasing while PC market is declining?

Lenovo has reported a 54 per cent increase in sales despite harsh economic situation and declining PC market.

Recently, in the unstable economic conditions, most manufacturers have been struggling to make profit. For many sales have dropped significantly due to a weak retail demand. Lenovo, however not only managed to increase its profit in declining global PC market, but also experienced a substantial jump in sales. Since the company diversified its products to include tablet PCs and smartphones it reported a 54 per cent growth in profits in emerging markets as well as in the US. Although globally it cannot compete with Apple when it comes to smartphones and tablets Lenovo brand is very strong in China. Despite its moves into other sectors, however PCs still remain its main focus.

In the last three months of 2011 company’s profit rose to £96.8m. It overtook Dell to become the second-largest PC vendor, with Hewlett-Packard claiming number one spot. Expanding sales in China, acquisition of Germany's Medion and a joint venture deal with Japan's NEC Corp all contributed to this success. Lenovo’s worldwide market share also rose to 14 per cent, up from 10.3 per cent comparing to Dell’s which grew from 12 per cent to 12.9 per cent in the third quarter. The firm remains confident that its growth will continue in the future: ‘Although challenges to worldwide PC demand remain, such as the pace of global economic recovery and the ongoing debt crisis in Western Europe, and even a hard disk drive supply shortage and cost increases, Lenovo remains optimistic that its growth momentum will continue.’

ThinkPads | Tablets | Desktop Computers | LED Notebooks | Graphic Cards | Internal Hard Drives | Tower Work Stations | Notebook Batteries | Carrying Cases