Lenovo posts record revenue of $7.8bn as PCs flourish

Lenovo has posted record breaking financials with revenue of $7.8bn, showing that there is still demand for traditional devices such as laptops despite the popularity of tablets such as the iPad.

The Chinese manufacturer saw total PC shipments grow by 35.8 per cent compared to the same quarter in 2010. Revenue increased by a healthy $1.9bn from the first quarter of 2011. Operating profit was up by $43m from the last quarter, rising from $123m to $166m.

The laptop division generated 57.5 per cent of the total sales revenue during the quarter, although this was slightly down from the previous quarter's figure of 59.8 per cent.

Despite overall PC shipments in mature markets dropping by three per cent during the quarter, Lenovo managed to maintain positive growth in mature markets.

Quarterly sales in markets such as Japan and Western Europe rose by an impressive $1.2bn from $2.1bn to $3.3bn, overtaking revenue generated from the Chinese market ($3.2bn), which has traditionally been Lenovo's strongest region. The company saw sales in emerging markets rise from $1bn to $1.3bn from the last quarter.

Lenovo has experienced rapid growth during 2011, and overtook Dell to become the second largest PC supplier during October, an announcement that analysts at IDC ironically made at the start of the inaugural Dell World event in Texas.

Lenovo posts record revenue of $7.8bn as PCs flourish

"In just two quarters, Lenovo has gone from the number four to the second largest PC vendor in the world. We achieved balanced growth across all markets, product categories and geographic regions," said Yang Yuanqing, chief executive of Lenovo, in the financial earnings report.

"In China, we continued to extend our lead, while in emerging markets we have been growing more than three times the market growth rate. Including the successful integration of the NEC and Medion businesses in mature markets, we recorded for the first time a turnover exceeding that of the China market. Not only has profitability substantially increased, but with record market share."

Lenovo also claims to be growing in the mobile market, but has not released any specific sales figures. The firm acknowledged only that it is ranked number two in the Chinese tablet market and is "making headway" in this sector. The firm released a business oriented ThinkPad Tablet in the US market during the quarter, which received three stars from V3.

Meanwhile, Japanese manufacturer Sony continues to have a forgettable 2011, forecasting a loss for the fourth straight quarter.

The company expects to post losses of $1.1bn as floods in Thailand disrupted camera production, and its TV division continues to struggle. The firm has had a very difficult 24 months, posting a net loss of $3.1bn for the financial year ending 31 March 2011.

The manufacturer has also struggled to make an impact in the mobile market where Apple and Samsung have blossomed. Sony made the announcement that it will buy out long-term partner Ericsson in a bid to revive the division, but it remains to be seen whether Sony can single-handedly turn its fortunes around.