Lenovo continues to report strong financial results
As Samsung continues to enjoy success in the smartphone industry, Lenovo has taken on the much harder task of successfully navigating through a shrinking PC market. While top vendor Hewlett-Packard (HP) is losing ground in laptop and personal computer sales, Lenovo’s reports for its fourth fiscal quarter and full-year (which ended March 31, 2013) display an upward trend of increasing profit and revenue.
Lenovo’s previous fiscal year sales growth was 15% for a total of 34 billion U.S. dollars. Pre-tax income rose to 801 million U.S. dollars (+38%), whereas Lenovo garnered 635 million U.S. dollars in earnings - an increase of 34 percent. Meanwhile operating profit for the fourth quarter was $ 169 million, an increase of 67 percent.
Though Lenovo sold 2 percent fewer notebooks in the fourth quarter the company managed to actually ship 0.4 percent more notebooks, as opposed to an overall industry decrease of 14.2 percent. As for desktop PCs, Lenovo bucked the double-digit downward trend with only a 2 percent drop in consolidated sales while shipments remained flat. Overall, the PC industry exhibited a decline in shipments of more than 13 percent year-over-year according to IDC.