Lenovo Beats The Odds, Makes $9.4 Billion While Global PC Shipments Falter
While demand for traditional PCs may be lagging due to the popularity of mobile products, Lenovo seems to have no problem turning a hefty profit. The PC manufacturer’s third quarter earnings report shows that Lenovo sold $9.4 billion worth of hardware during the second half of 2012. Of those earnings, the company will be holding on to $200 million as net profit.
This marks significant growth for the long-time hardware maker, especially since the rest of the PC industry is combating weak demand.Although Lenovo raked in billions, global PC shipments decreased by 6.4 percent in the last three months of 2012 compared to the same period in 2011, according to research from the IDC. Lenovo, however, saw an increase of 8.2 percent in its PC shipments, while competitors like HP fell by 0.6 percent and Dell plummeted by 21 percent. The manufacturer also surpassed analysts’ expectations, blowing past the $178.4 million net profit estimate revealed in a Thomson Reuters poll of 11 industry experts.
In a market sector that some may consider a dying breed, Lenovo has targeted the mobile mentality with its 2012 PC releases. For example, its Windows 8 IdeaPad Yoga 13 can fold completely to create a tablet-like experience, allowing users to switch between slate and clamshell mode. When it comes to LAPTOP’s best and worst laptop brands of 2012, Lenovo fared as one of the top PC makers.
Lenovo may be a household name when it comes to personal computers, but it’s been cultivating a strong smartphone presence overseas as well. The company claims the title of second-biggest smartphone manufacturer in China, and has begun expanding its efforts to markets such as Russia, Indonesia, the Philippines and Vietnam, despite living in a market dominated by Apple and Samsung.
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