Lenovo makes $141 million as its PCs close in on HP
The company says its market share is up across the board, as its products continue to sell well worldwide.
Lenovo is on fire.
The PC maker today reported sales of $8 billion during its fiscal quarter that ended June 30, up 35 percent from the $5.9 billion it generated during the same period last year. Lenovo's profit hit $141 million, up from the $108 million it posted in the fiscal first quarter of 2011.
Lenovo's strong performance comes on the back of its soaring PC shipments. The company's notebook shipments rose 27 percent in the fiscal first quarter, helping it to hit a record 15.4 percent market share in that market. On the desktop front, Lenovo saw shipments jump 21 percent year over year.
Lenovo claims to own 15 percent of the worldwide PC market, putting it just behind its chief rival, Hewlett-Packard, at 15.7 percent share. Late last month, research firm Canalys pegged Lenovo's second-quarter market share at 12.1 percent in the worldwide PC market -- and HP's at 12.5 percent. However, Canalys includes tablets in its tally.
Over the last several quarters, Lenovo's confidence in its PC strategy has increased as it continues to deliver what it believes, are superior hardware products to customers. Just yesterday, Lenovo CEO Yang Yuanquing said that his company is "still confident that we are providing much better hardware than our competitors, including Microsoft," in reference to the software giant's upcoming Surface tablet.
The true secret to Lenovo's success, however, might be international markets. The company saw its shipments jump 9.2 percent in China over the last year and a whopping 59.2 percent in the Asia-Pacific/Latin America region. Shipments across Europe, the Middle East, and Africa rose 62.3 percent over the previous year.