CHINESE PC MAKER Lenovo announced bumper third quarter profits as it claims to be gaining on industry leader HP.
Lenovo is recognised as the second largest PC vendor but the firm's financials point to its desire to overthrow HP as top dog in the PC business sooner rather than later. Lenovo's third quarter sales totalled $8.3bn, a massive 44 per cent increase over the same quarter a year previously, with profits growing even more to $154m, a 54 per cent increase.
Lenovo outlined its plans to increase market share by going after emerging markets, with the firm using IDC figures to show that it had increased its market share in a number of key emerging markets such as Brazil, India and Russia by an average of 7.8 per cent. Perhaps most ominous for Lenovo's rivals was the firm's claim that its market share in the most important market of all, China, grew by over 35 per cent, while firms such as Acer and HP managed only 9.5 per cent and 5.3 per cent growth, respectively.
Lenovo also pulled a rabbit out of its hat by saying that its desktop PC sales were up 39 per cent year-on-year. It is generally accepted that the desktop PC market plateaued and has been in decline for some time, but according to Lenovo it accounted for exactly 33 per cent of its third quarter revenues, with laptops accounting for over 53 per cent.
In recent years Lenovo has been pushing smartphones and tablets, especially in its home market of China. According to the company it is the second biggest tablet shipper in China, and the firm also referred to its plans to get into the 'smart television' business.
Lenovo's figures show there is some steam left in the desktop and laptop PC markets. While HP flounders around with its PC operations, there is a very good chance that next year Lenovo could overtake it as the world's largest PC vendor. µ