PC maker Lenovo turns to profit on China sales

Aug 19, 2010
In this May 25, 2006 file photo, a man adjusts a Lenovo display at a high-tech exhibition in Beijing, China. Lenovo Group, the fourth-largest personal computer maker, said Thursday, Aug. 19, 2010, it rebounded to a quarterly profit from a loss a year earlier, driven by strong sales in China and other emerging markets. (AP Photo, File)

(AP) -- Lenovo Group, the fourth-largest personal computer maker, said Thursday it rebounded to a quarterly profit from a loss a year earlier, driven by strong sales in China and other emerging markets.

Profit was $55 million for the three months ending June 30, or 54 cents per share, compared with a $16 million loss last year, the company said.

Global sales surged 50 percent from a year earlier to $5.1 billion, boosted by a 50 percent rise in Lenovo's home China market. Sales in other emerging markets doubled.

Lenovo has tried to build on its dominance in China and expand in other developing markets to offset weakness in Western economies amid the global crisis - a tactic that chairman Liu Chuanzhi said was working.

"Our performance was strong globally, Lenovo has a clear strategy when and where to focus on gaining share, and when and where to focus on maximizing profit, and we executed that strategy well," Liu said in a statement.

The company said its share of the global PC market rose to 10.2 percent, its first double-digit figure to date.

Lenovo was hit hard by the , which prompted its core corporate customers to slash purchases. The company suffered three losing quarters before rebounding to profit in the three months ending last September.

The company acquired IBM Corp.'s PC unit in 2005 and expanded into wireless computing this year, launching its first smart phone and two Web-linked portable computers in January.

In China, sales rose to $2.5 billion, accounting for 48.7 percent of worldwide sales, said the company, which has headquarters in Beijing and in Research Triangle Park, North Carolina.

Sales rose to $821 million, or 16 percent of the total, in other including Eastern Europe, India, Latin America, Pakistan and Turkey.

Sales in the United States, Europe and other mature markets grew less strongly but still racked up a 38.5 percent rise over a year earlier to $1.8 billion.

Explore further: J2 Global CEO Hemi Zucker says LA tech scene is heating up

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Lenovo says business will focus on mobile Internet

Mar 12, 2010

(AP) -- Lenovo Group expects wireless Internet products to account for up to 80 percent of its sales within five years as it pursues expansion in faster-growing emerging markets, CEO Yang Yuanqing said Friday.

PC maker Lenovo reports loss amid weak demand

Aug 06, 2009

(AP) -- Lenovo Group, the world's fourth-largest personal computer maker, reported a $16 million quarterly loss Thursday and said it faces pressure from weak global demand and intense competition.

Lenovo reports losses as sales plummet (Update)

May 21, 2009

China's Lenovo, the world's fourth largest maker of personal computers, Thursday reported a net loss of 226.4 million US dollars in the 2008-09 fiscal year citing structural changes and weak sales.

Lenovo Eliminating 1,400 Jobs

Apr 20, 2007

The PC maker says it will save $100 million this fiscal year by eliminating some jobs and moving other positions to emerging markets.

Lenovo buying back mobile phone business

Nov 27, 2009

(AP) -- Personal computer maker Lenovo Group said Friday it is joining the race to develop products that link phones and PCs by buying back a mobile phone business that it sold last year.

Recommended for you

LivingSocial's new CEO eyes an experience-oriented future

11 hours ago

Some big challenges lie ahead for LivingSocial, the online marketplace known for its daily deals and discounted prices on restaurants, spas and local activities. But that's where the company's new chief executive, Gautam ...

Uber hits roadblock as CEO charged in S. Korea

19 hours ago

South Korean prosecutors brought charges on Wednesday against the founder and CEO of controversial smartphone taxi app Uber for operating an illegal cab service, the latest roadblock for the California-based ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.