Chinese PC, tablet and smartphone vendor Lenovo announced impressive revenue and profit growth for the second quarter of fiscal 2014.
Lenovo’s second fiscal quarter revenue rose 13 percent to $9.8 billion year-over-year.
Profit increased 36 percent to $220 million.
Lenovo, which competes with HP, Dell, Asus, Acer, etc., shipped 29 million devices in Q2. Out of this, Lenovo shipped 14.1 million PCs in the second quarter. Lenovo, which has 17.7 percent PC market share — up 2 points year-over-year, is in number one positions in five of the top seven PC markets.
The company said its sales from Mobile Internet and Digital Home (MIDH) products, which includes smartphones, smart TV and much its tablet business, was 15 percent of total revenues, up from eight percent.
Lenovo smartphone shipments rose 78 percent.
Lenovo tablet shipments rose 4.2 times to 2.3 million, driven by sales outside China.
Lenovo’s China business revenue rose 1 percent to $3.8 billion. China accounted for 40 percent of the company’s worldwide revenue. Lenovo’s revenue in smartphones and tablets in China grew 45 percent.
Asia Pacific revenue of Lenovo rose 1 percent to $1.5 billion or 15 percent of company’s worldwide revenue. Smartphones contributed to sales and profitability. In AP, Lenovo also reached a milestone of having shipped over a million smartphones and tablets.
Lenovo’s revenue in the Europe/Middle East/Africa (EMEA) geography increased 26 percent to $2.3 billion, or 23 percent of Lenovo’s worldwide revenue. During the quarter, Lenovo had record PC shipments in EMEA at 15 percent, up 4.2 points year-over-year.
Revenue of Lenovo from Americas rose 37 percent to $2.2 billion or 22 percent of worldwide revenue. PC volume in the Americas group was up 39 percent allowing Lenovo to outperform the market by 43 percentage points.
Lenovo’s laptop computers were the largest contributor to the company’s revenue worldwide, generating 51 percent of Lenovo’s total revenue. Across the industry, laptop shipments were down 12 percent year-over-year.
Sales for Lenovo’s laptop PC business rose 8 percent to $5 billion. The company gained 2.6 share points and achieved a market share of 18.5 percent.
Lenovo’s Desktop PC shipments grew 1 percent, compared to an overall industry decrease of 6 percent. Sales of Lenovo desktop PCs decreased 3 percent to $2.7 billion, or 28 percent of the company’s total revenue.
Sales of Lenovo’s Mobile Internet Digital Home (MIDH) products, including smartphones and tablets increased 106 percent to $1.5 billion or 15 percent of total revenue.