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| Strong demand for computers strengthens Lenovo |
Strong demand for computers has bolstered the position of Chinese company Lenovo, the world's largest computer manufacturer, which has posted better-than-expected quarterly profits despite tough times due to the COVID-19 pandemic.
According to Lenovo, net income increased 31% to $ 213 million, and revenue increased 7% to $ 13.3 billion from June in the first quarter of 2021.
"The PC market has exceeded market expectations of the market downturn, and we are taking advantage of the opportunities provided by work and distance education," Lenovo said in a statement.
"In the future, the company expects high demand for personal computers to be a long-term trend," she added.
“Our outstanding performance in the last quarter shows that in the face of the pandemic, Lenovo has rapidly regained momentum and seized new opportunities for business, distance, education and accelerated digitization,” said Yang Yuanqing, Lenovo Chairman and CEO.
“As the world continues to face challenges, Lenovo is focusing on sustainable growth through our core businesses, services and new solutions that will emerge from the smart transformation of services,” he added.
The company attributes this growth to the Computers and Smart Devices (PCSD) group, which is part of the Lenovo Smart Devices group, which also includes the Mobile Business Group (MBG).
PCSD Group sales increased in double digits to reach US $ 10.6 billion, supported by global sales from consumer companies (up 45% year-over-year). 'others), especially in categories like games, slim and light devices, and Chromebooks. These have achieved double-digit growth.
PCSD sales in Europe, the Middle East and Africa (EMEA) increased 30%, while group sales in China increased 18%.
According to Lenovo, global e-commerce performed well this quarter. Sales increased by more than 50% compared to the previous year.
Although MBG sales decreased year on year, MBG was able to expand its market size in Latin America, North America and Europe.
Software and services revenue in Lenovo's Smart Transformation division increased 38% to more than $ 1 billion, accounting for approximately 7.6% of total consolidated revenue.