Computer
Lenovo profit more than doubled
A 5G personal computer from Chinese computer manufacturer Lenovo, the world’s first PC with 5G connectivity, is on display at the CES technology fair. Photo: Wu Xiaoling / XinHua / dpa
In Corona times, notebooks are in high demand. This flushes strong profits into the coffers of Lenovo. The global scarcity of components seems to have nothing to do with the Chinese manufacturer.
The PC world market leader Lenovo continues to benefit from the increased demand for notebooks in the corona pandemic. Last quarter, profit rose 119 percent year-on-year to $ 466 million, the Chinese company said on Wednesday.
In the first quarter of the fiscal year ended June 30, revenue increased by 27 percent to $ 16.9 billion (EUR 14.45 billion).
In Germany, Lenovo was able to expand its position in the midst of a continuing rampant shortage of components in the industry. The company achieved a market share of 49 percent in the business with notebooks for business customers with 670,000 devices sold. Previously, the figure was about 42 percent. Availability has already been well planned for 2020, said Lenovo manager Mirko Krebs.
The average selling price of computers sold in Germany was still about 150 euros higher than in the previous year. This is partly due to the fact that cheaper models are difficult to obtain in view of the component bottlenecks and the strong global demand, for example from the education sector. Among other things, displays and processors for the entry-level segment are scarce.
Overall, Lenovo assumes that the short-term corona boom of last year, in which the notebook shelves were bought empty, is at least over in the consumer business-but the market as a whole has become larger again. The situation before Corona, in which there was usually one current notebook per household, will not return, Krebs emphasized. Instead, the trend is that virtually everyone needs a notebook that is regularly replaced by a new one.
Lenovo also sells smartphones, including under the Motorola brand, but the PCs remain the mainstay of the business. Of the $ 14.7 billion in revenue generated by the equipment division, only 18 percent was generated with other technology. At the same time, smartphone revenues rose by 60 percent year-on-year, the Group emphasized.
