Lenovo, the world’s largest maker of PCs, saw its profits leap 24 per cent this spring.
The China-based manufacturer reported first-quarter profits of $211m, compared to $170m for the year before.
That was from revenue that jumped 18 per cent to £10.39bn. Earnings per share for the giant were up, from $1.65 to $2.03 for the period to June 30.
The manufacturer beat the ongoing slump in PC sales. Shipments grew year-on-year, meaning its desktop and notebooks were both up by 12 per cent, the company said.
However, it was mobile devices that came tops – growing by a whopping 32 per cent.
In April Gartner crowned Lenovo the largest shifter of PCs for the first quarter of the year with 12 million units moved – a 17 per cent increase compared to the year before. That was despite a decline of 1.7 per cent in worldwide PC shipments for the period, to 76.6 million.
Lenovo reckoned that during its first quarter reliance on China had slipped further. China now accounts for just over a third of revenue, down from half three years ago. Growth is instead coming from the US and EMEA – a record for the former, with EMEA growing in volume by 51 per cent, according to Lenovo.
Looking ahead, and with the IBM server acquisition still going through, Lenovo reckoned that, once closed, the x86 server business could yield a $5bn enterprise business bonus with higher margins than PCs in one year's time. ®