Lenovo clocks weak profit growth

Stefan Mileschin · 9th November 2012, 07:29

Even as it heads to become the world's top PC maker, Lenovo has recorded its weakest quarterly profit growth in more than two years.

Lenovo reported a net profit of $162 million in the July-September period, compared with $143.9 million a year earlier.

The company had made a number of acquisitions in the United States, Japan, Germany and Brazil over the past few years which has strengthened its hand.

Lenovo derives nearly half of its sales from homeground China where sales are strong. However it appears that it is losing cash in areas such as the United States, and Europe due to the economic problems in those regions.

Lenovo shares are up 28 percent since the start of this year. It is doing much better than other PC makers, such as HP, Dell and Acer.

Reuters trotted out the mantra that the real reason is that people are no longer using PCs and are buying mobile toys instead. However, anyone who has tried to do any real work on a tablet will tell you that is not happening - and besides, the reduction in PC sales only seems to apply to the economic stricken regions of the EU and US.

Lenovo has launched its own mobile gear too. Its LePhones have gained traction in China with the PC maker ranking second in terms of market share in the second quarter, behind Samsung.

http://news.techeye.net/hardware/len...-profit-growth

9th November 2012, 07:29	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 153,514	Lenovo clocks weak profit growth Even as it heads to become the world's top PC maker, Lenovo has recorded its weakest quarterly profit growth in more than two years. Lenovo reported a net profit of $162 million in the July-September period, compared with $143.9 million a year earlier. The company had made a number of acquisitions in the United States, Japan, Germany and Brazil over the past few years which has strengthened its hand. Lenovo derives nearly half of its sales from homeground China where sales are strong. However it appears that it is losing cash in areas such as the United States, and Europe due to the economic problems in those regions. Lenovo shares are up 28 percent since the start of this year. It is doing much better than other PC makers, such as HP, Dell and Acer. Reuters trotted out the mantra that the real reason is that people are no longer using PCs and are buying mobile toys instead. However, anyone who has tried to do any real work on a tablet will tell you that is not happening - and besides, the reduction in PC sales only seems to apply to the economic stricken regions of the EU and US. Lenovo has launched its own mobile gear too. Its LePhones have gained traction in China with the PC maker ranking second in terms of market share in the second quarter, behind Samsung. http://news.techeye.net/hardware/len...-profit-growth

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Weak Video Game Sales Expected?	Stefan Mileschin	WebNews	0	9th March 2012 08:12
Boost a Weak 3G Modem Signal With a Saucepan	jmke	WebNews	1	31st December 2009 13:07
PC Shipment Growth Falls, Mac Shipment Growth Increases	jmke	WebNews	1	18th April 2008 11:20
Wiimote attacks TV weak point for massive damage	jmke	WebNews	4	7th December 2006 23:28
Demand for Nvidia G80 chips weak as market expects G84 and G86 lineup	jmke	WebNews	3	21st November 2006 03:36
Intel has a major '06-'07 weak spot, and AMD is aiming right at it	jmke	WebNews	0	7th January 2006 13:31
DDR2 inventory reflects weak market	Sidney	WebNews	0	5th November 2005 18:54
IDC Says EU’s IT Marker Growth Backed by Weak USD, Predicts Dampen in Spending	jmke	WebNews	0	11th April 2005 11:16
Intel Centrino brand weak, AMD thinks	Sidney	WebNews	1	3rd February 2005 22:16
IBM and Lenovo Deal Finalized, IBM’s PC Unit Acquired by Lenovo	jmke	WebNews	0	9th December 2004 10:43