[photopress:lIT_enovo_ideapad_notebooks.jpg,full,alignright]Lenovo says its net income doubled in its latest quarter despite the economic slowdown in the United States.
Helped by strong sales in its home market, Lenovo’s profit in its fourth financial quarter ended March 31 jumped to $140 million from $60.3 million a year earlier. Revenue rose 14% to $3.73 billion.
Global shipments by Lenovo were up 21%, compared with a rate for the industry of just 15%.
However, executives warned that the weak US economy poses future challenges for the PC industry, and said they plan to streamline Lenovo’s supply chain in the coming year.
In a statement filed with Hong Kong securities regulators the company said, ‘The increased adoption of notebook computers worldwide continues to be the primary driving force behind the growth of the worldwide PC market. Lenovo is uniquely positioned to capitalize on this trend.’
Notebook computers made up 58% of Lenovo’s total sales.
The company is hoping to grow via its new IdeaPad lines. However critics say the IdeaPads are priced above models from rivals like Acer, and it will need to its broaden offerings and cut prices.
(The writer has just bought a new notebook. Although the Lenovo was tempting the final purchase was a Dell purely on economic grounds with the models compared feature for feature.)
The computer maker said the greater China market accounted for 37% of sales, followed by the Americas with 28%, and Europe, the Middle East and Africa with 22%.