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Lenovo delivers a strong Q2 2019 driven by its PC business

This past week Lenovo held its now annual Tech World conference in Beijing, highlighting what the firm has on the way both on the consumer and enterprise fronts. Prior to the event, Lenovo revealed its quarterly earnings for Q2 2019, with group earnings rising to $13.5 billion.

It also marks the ninth consecutive quarter in which Lenovo has experienced year-on-year revenue growth, with net income in particular climbing sharply by 20 percent year-on-year.

The significant contributing factor to this growth in Lenovo’s view, besides a strong showing in the PC department, is the company’s continued push to innovate on a global scale, and more specifically how its footprint is broadening with each passing year.

“During the quarter we were pleased to see our growth momentum deliver continued solid financial performance amidst a complex and dynamic global trading environment. This success is a testament to our commitment to innovation, to our customers across 180 markets around the world, and to how the world continues to embrace our vision to deliver smarter technology for all,” noted Yang Yuanqing, Lenovo chairman and CEO.

Unlike some of its other Chinese brethren, Lenovo has pointed out the fact that it has been able to negotiate current economic and geo-political uncertainties.

“Lenovo’s global footprint, flexible, majority-owned manufacturing base and ongoing strong financial performance remain competitive differentiators propelling the company’s market-leading position. Going forward, Lenovo is well positioned to manage complex and dynamic market conditions, while continuing to deliver sustainable long-term results,” the firm adds.

Diving deeper into the quarterly results, it’s the company’s PC and smart devices group that is leading the charge, claiming a 7.1 percent year-on-year growth. With the PC market still in a state of recovery, Lenovo was able to hold a 24.4 percent share of the global landscape, as the firm’s more premium devices shown through.

To that end workstation, thin and light notebooks and well as the gaming division all played their part in getting Lenovo’s PC growth to its current healthy state.

The next pieces of the puzzle are the firm’s mobile business under the guise of Motorola and its data centre group, both of which are showing signs of improvement. The former posted its fourth consecutive year of profitability as the Motorola brand continues to thrive in Latin America markets.

Add to this the recently unveiled foldable Motorola razr and the mobile business stands on the cusp of exciting times, albeit without any presence locally at the time of writing.

What is available in South Africa is Lenovo’s data centre business, which has made strides, but struggled again with a 13.8 percent decline in revenue. With non-Hyperscale solutions in China yielding dividends for Lenovo, the group will continue to focus on this side of the business as it aims to make the outlook more positive. There will also be increased investments in edge, AI and telecoms infrastructure opportunities the company adds.

Should Lenovo’s mobile and data centre business be able to match that of its PC one in coming years, the firm will certainly be a force to be reckoned with.

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