Lenovo posts another record in quarterly revenue

Chinese tech giant Lenovo Group Ltd on Wednesday announced record revenue of $17.2 billion in the quarter that ended in December, marking a 22 year-on-year jump, on the back of strong growth in its personal computer, digital transformation and other businesses.

This also was the second consecutive record-breaking quarter for Lenovo, which said its innovative product portfolio has been adapting quickly to meet the work, learn and play requirements from home culture in a rapidly changing world, while transformation investments continue to drive new long-term growth opportunities.

Lenovo said its profits set new records, with its pre-tax income in the quarter going up 52 percent year-on-year to $591 million, while net income also increased by 53 percent year-on-year to $395 million.

"The delivery of yet another record-breaking quarter is a reflection of our innovative product portfolio and operational excellence, which drove growth across all businesses," Yang Yuanqing, Lenovo chairman and CEO, said.

"Clearly, 2020 was a challenging year that brought remarkable changes to our world, yet Lenovo quickly responded to the changing market driven by new work and lifestyle trends and delivered strong results. Now, as we begin to see the results of our transformation investments, we will further invest in technology and innovation, drive intelligent transformation across industries, and create sustainable growth," Yang said.

Lenovo said challenges will continue in 2021, including ongoing geopolitical uncertainties, component supply shortages resulting from strong demand and the global COVID-19 pandemic.

But as a global company operating in 180 markets and with more than 30 manufacturing sites around the world, Lenovo said its outlook for 2021 remains positive. The new global norm of work, study, and play from home will continue to drive long-term and sustainable growth trends in device demand and cloud/infrastructure requirements.

Lenovo recorded 29 percent year-on-year growth in its global PC shipments to over 23.1 million units in the fourth quarter of last year. The robust performance has helped Lenovo further dominate the global PC sector with a market share of 25.2 percent, a new high for the company, said International Data Corp, a market research firm.

Yang also announced on Wednesday that Lenovo will set up a new business group to capitalize its service-led transformation growth opportunities.

Effective April 1, Lenovo will bring together services and solutions teams and capabilities from across the company to form a dedicated organization – the new Solutions & Services Group, Yang said.