There are very few people who haven't heard of Lenovo. This Chinese tech company has had a great year thus far it seems. Lenovo announced Q2 results and they're great actually. The company has an increase in profit of 19%, mainly because the sales of PC and smartphones are going as planned, it seems even better than expected. Lenovo managed to increase its market share in both PC and smartphone market. The company has posted a net profit of $262.1 million for Q2, compared to $219.7 million last year. Company's overall revenue rose from $9.77 billion to $10.48 billion which is an increase of 7%. "Lenovo had another strong quarter that saw excellent market share gains and profit expansion. Not only did we reach nearly 20 percent share in PCs, but we became #1 in the broader PC+ tablet market for the first ," said Yuanqing Yang, Lenovo's chairman.
Keep in mind that Lenovo's PC business is company's main source of income though, Lenovo is world's number 1 PC manufacturer. Lenovo controls about 20% of global market share in the PC segment, but it also growing constantly in the smartphone segment of the market. The company has sold 16.9 million smartphones during the Q2 this year which makes Lenovo the fourth largest smartphone vendor in the world. Lenovo is selling the majority of its devices in its home market, China, though the company is having presence all over the world. It seems like their entry-level handsets are more popular than expected, perhaps they really don't need to go head-to-head with other OEMs in the high-end department. We'll see how will Lenovo fare next year considering there are many Chinese OEMs which are on the rise at the moment and are extremely competitive as far as pricing goes.
Did you expect Lenovo to post such great financial results? I have to admit I did not, I expected solid results from Lenovo, as always, but didn't expect the will mark such significant increase in the smartphone department considering the amount of competition they're getting all over the world, especially in China. Companies like Xiaomi and Meizu are really hard to keep up with as far as pricing goes.