The Chinese giant has excellent quarterly results in all the geographic markets where it is present.
Lenovo posted positive financial results for its second quarter of 2019 as computer sales continue to generate stable revenue.
Thursday, the Chinese supplier of electronic products achieved a group turnover of 13.5 billion dollars in the second quarter, up for the ninth consecutive quarter compared to the previous year.
Earnings before income taxes increased 45% to $ 310 million and net income increased 20% year-over-year to $ 202 million. Lenovo beat analyst estimates of $ 199.59 million in net earnings, according to Reuters’ Refinitiv data.
The great strength of Lenovo PCs
The company says revenue has remained stable in all regions – Americas, Asia-Pacific, China and EMEA – and each has reported revenue growth of more than 20 percent, despite the existence of “global commercial and geopolitical uncertainties”.
“For the future, Lenovo is well-positioned to manage complex and dynamic market conditions, while continuing to deliver long-term sustainable results,” the company said.
Lenovo’s Intelligent Devices Group (IDG), comprised of both PCs and Smart Devices Group (PCSD) and Mobile Business Group (MBG), generated the largest revenues.
The datacenter at half-mast
PCSD sales were $ 10.7 billion, up 4.1% year-over-year and 7.1% year-over-year sales growth. Lenovo now accounts for about 24.4% of the global PC market.
The second unit of IDG, MBG (Mobile Business Group), did not experience the same success. Mobile unit revenue decreased 5.7% to $ 1.5 billion.
Lenovo Data Center Group (DCG) revenue was down 13.8%. The Chinese seller continues to try to reduce the costs of the deficit unit by removing jobs
Software and services grew 35% year-over-year
The tech giant says that except for Hyperscale customers (cloud providers), revenue has increased quarter over quarter, especially in China where revenue has increased. jumped more than 47%.
Software and services grew 35% year-over-year to nearly $ 900 million in revenue.
“During the quarter, we found that our growth momentum allowed us to achieve strong financial results in a complex and dynamic global business environment,” said Lenovo CEO Yang Yuanqing. “This success demonstrates our commitment to innovation, our commitment to our customers in 180 markets around the world, and how the world continues to embrace our vision of delivering smarter technology for all.