Lenovo, the monolithic Chinese firm and famed marketer of the ThinkPad line of notebooks, reported strong Q1 earnings yesterday.
Lenovo unveiled $8.8 billion in revenue which amounted to a 10% year-over-year surge. And when you couple that with $170 million in profit it because a patent fact that Lenovo is having a lucrative run.
But one thing that isn’t so obvious is that Lenovo is actually becoming a mobile-first, PC plus, company. Lenovo revealed that tablet and smartphone sales usurped PC sales which established Lenovo as the fourth largest smartphone supplier in the world.
Yang Yuanqing, CEO of Lenovo weighed in with his thoughts:
In a tough PC market, Lenovo became the clear #1 for the first time and continues to improve profitability. Our strong performance in PC is fueled by balanced growth, through our consistent execution of the right strategy. While driving profitable growth in our core PC business, we are rapidly transforming our company into a PC Plus company. The PC Plus market requires fast, efficient innovation as it moves quickly from premium products to mainstream ones and from mature market domination to emerging market hyper growth. This kind of market plays to Lenovo’s proven strengths. Lenovo is now better positioned than our competition to take advantage of these clear trends.
Lenovo plans to continue its accelerated reach in a post-PC era and will continue to refine it’s mobile presence. The only weakness I could find were the comparatively vapid Q4 results from Lenovo’s laptop business. It slid to $4.2 billion dollars which is a 2% drop but that’s not so bad when you put this blemish in the market context.
So far this year, global computer shipments across all vendors dived almost 14% to about $76 million.
The bottom line is that laptops and PC sales continue to decline as tablets and smartphones become increasingly ascendant.
Mobile mania hasn’t abated and Americans are still flocking in droves to join the gadget trend. And based off Mr Yuanqing’s comments and his strong Q1 results from the mobile space, I’m going to deduce that we won’t have to wait long before Lenovo unveils a sparkling new, lighter, sleeker smartphones designed to compete with Samsung and Apple.
Let’s see what Lenovo comes up with.