Focusing on the SMB market has paid off for Lenovo as the PC maker posted 30 per cent growth in profits during its fiscal first quarter.
In the earnings report, Lenovo said its net profit reached $141 million in the quarter, up from $108 million in the same period a year ago. The company’s revenue in the quarter was at $8 billion, a year-over-year increase of 35 per cent. The company’s PC marketshare is slightly below that of rival HP at 14.9 per cent.
According to Lenovo, the PC vendor’s growth was balanced across all geographies, customers segments and products lines, as a result of this Lenovo will continue to focus on executing its “protect and attack” strategy of reinforcing its business in established markets while going after potential new markets. As the industry evolves to the PC Plus era, Lenovo has moved aggressively to ensure that the company is well-positioned as the industry shifts to include more tablets, Smart TVs and smartphones in the product mix.
Recently Lenovo announced a global partnership with EMC, forming a server technology development program that will help drive innovation and extend Lenovo’s capabilities in x86 industry-standard servers. As part of this agreement, Lenovo will bring these servers to market on its own, and embed them in select EMC storage systems over time. Lenovo replaced a major competitor to establish an OEM and reseller relationship where Lenovo will provide EMC’s industry-leading networked storage solutions to Lenovo customers worldwide, starting with China.
