Strong demand for PCs boosted the Chinese company, Lenovo, as registered The world’s largest computer maker had better-than-expected quarterly profits, despite tough times due to the COVID-19 pandemic.
Lenovo announced a 31 percent jump in its net profit for the first quarter of 2021 ending in June to $ 213 million, and revenue increased 7 percent to $ 13.3 billion.
“The PC market has significantly outperformed industry expectations of a market downturn, and we are taking advantage of the emerging opportunities from remote work and education,” Lenovo said in a statement.
“Looking to the future, the company expects this strong demand for personal computers to be a long-term trend,” she added.
Lenovo Chairman and CEO Yang Yuanqing said: “Our outstanding performance in the last quarter proves that Lenovo has rapidly regained momentum from the impact of the epidemic and is seizing new opportunities emerging from remote work, education and accelerated digitization.
“As the world continues to face challenges, Lenovo is focused on delivering sustainable growth through our core business as well as new services and solution opportunities provided by smart service-led transformation,” he added.
The company attributed this rise to the Computer and Smart Devices (PCSD) group, which is part of Lenovo’s smart device group, with the Mobile Business Group (MBG).
PCSD Group recorded double digit revenue growth to reach $ 10.6 billion, and this was supported by a 45% year-on-year growth in consumer business revenue worldwide, especially in categories such as games, thin and light devices, and Chromebooks. Which have all seen double-digit growth.
PCSD revenue in Europe, the Middle East and Africa (EMEA) increased by 30 percent, while group revenue in China increased by 18 percent.
Global e-commerce also performed well during the quarter, with revenue growing more than 50 percent year-on-year, Lenovo said.
Although MBG revenue declined year-on-year, it managed to expand its market size in Latin America, North America and Europe.
And when it comes to Lenovo’s smart transformation unit, revenue from software and services grew by 38 percent, to more than $ 1 billion, which represents about 7.6 percent of the group’s total revenue.