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Lenovo logs record quarter sales amid strong PC, laptop demand

Riding on the surge in demand for PCs and laptops in the remote working and learning times, Lenovo Group has announced record Group revenue of $14.5 billion in its second quarter, up 7 per cent year-on-year and with all businesses showing strong growth.

Net income was up 53 per cent (year-on-year) to reach $310 million.

Lenovo's Intelligent Devices Group (IDG) continues to lead the growth with all-time record revenue for the PC and Smart Devices Group (PCSD) of $11.5 billion, up 8 per cent year-on-year.

Lenovo's operational capability, timely response to the work and learn from home trend and focus on high-growth and premium segments drove the record quarterly performance. Lenovo leads the global PC market with #1 market share of 23.6 per cent, the company said in a statement.

"Our record results this quarter reflect our ongoing commitment to meeting the needs of the rapidly growing work-, learn-and play-from-home economy. All of our core businesses delivered year-on-year growth, while our Software and Services revenue grew to a new record," said Yuanqing Yang, Lenovo Chairman and CEO.

"As the world continues to adjust to the 'new normal', we are confident in the long-term growth potential of both devices and cloud infrastructure".

The second business unit, the Mobile Business Group (MBG), had revenue growth of 39 per cent quarter-to-quarter and returned to year-on-year growth, continuing the strong recovery from the impact of Covid-19.

The quarter also saw key innovation milestones with the launch of the razr 5G foldable smartphone and the company's first dedicated gaming phone under the Lenovo Legion brand.

The Data Center Group (DCG) saw continued growth. Revenue grew 11 per cent year-on-year to $1.48 billion, with improved profitability.

"The Cloud Service Provider segment continued to grow, with revenue increasing 34 per cent year-on-year, with strong growth across all geographies," the company said.

Lenovo said it sees a positive outlook for the second half of the year, with the new global norm of work, learn and play from home driving long-term growth trends in device demand and cloud/infrastructure requirements.

In particular, the Group expected the total PC market to grow well beyond current analyst forecasts to closer to 300 million units in calendar year 2020, around 25 million more than the total available market last year.