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Special economic situation: PC market leader Lenovo significantly increases quarterly profit

2019-08-15T09:49:17.288Z

TIME ONLINE | News, backgrounds and debates



Hong Kong (dpa) - Lenovo, the world's largest PC maker, has benefited from a surprising surge in demand in the long-running market over the past quarter. The profit of the Chinese company jumped from $ 77 million to $ 162 million year-on-year.

According to calculations by analysts, Lenovo achieved a worldwide record market share of around 25 percent in PC sales. According to market observers, a number of corporate customers have recently opted for PC purchases planned for a later date for fear of price hikes in the wake of the US-China trade dispute. Among other things, the PC market has grown by 1.5 percent.

Lenovo boss Yang Yanqing said in a conference call with analysts on Thursday that prices for computers and smartphones would rise as the new US extra duties come into force. These were last shifted by US President Donald Trump to the 15th of December.

In Germany, the PC market grew by 7.5 percent last quarter. The business was boosted by the fact that many companies have to complete the transition from Windows 7 to Windows 10 by January 2020, said the responsible Lenovo manager Mirco Krebs. Then Microsoft discontinues the support of the older system. Lenovo was able to benefit from demand with a growth of 21 percent and now has a market share of 34 percent in Germany.

The downside is that in the coming year, the sales after completion of the Windows 10 switchover will remain at best at the level of 2019, as Krebs said. Lenovo wants to catch that up by doing business with other devices like monitors.

Sales growth in Germany was driven by business with companies, which grew by 21 percent. Lenovo grew at an above-average rate of 27 percent, reaching a market share of 38 percent. In contrast, sales of personal computers to consumers fell by 17 percent in Germany. Lenovo was able to achieve a slight increase of 0.6 percent here and comes, among other things with the brand Medion on a market share of 26 percent.

Lenovo's consolidated revenue increased 5 percent to $ 12.5 billion in the first quarter of fiscal quarters ended June. The lion's share of the PC division with well over 9.6 billion dollars. In the smartphone business, however, sales fell by nearly nine percent year-on-year to $ 1.5 billion. The Group sells its cell phones, among others, under the traditional brand Motorola.

Lenovo presentation on the past quarter

Source: zeit

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