Dubai: Europe, Middle East and Africa (EMEA) contributed the second-biggest revenue to the Lenovo Group in the second quarter to take its total to $10.5 billion, a 7 per cent increase year-over-year.
The EMEA witnessed a 33 per cent increase in revenue to $3 billion while China contributed $3.8 billion in the second quarter, but a decrease of two per cent year-over-year. Asia contributed 15 per cent to the group’s revenue, up three per cent year-over-year.
The growth in China is slowing down, faced by stiff competition from Huawei and Xiaomi in the smartphone space.
EMEA contributed 29 per cent to the group’s revenue while China contributed 36 per cent.
While earnings grew 19 per cent year-over-year to $262 million, Lenovo’s execution focus and innovative products drove a record high of 35.6 million smartphones, PCs and tablets shipped globally in the quarter.
“Lenovo has continued its tremendous growth in Middle East and Africa in the quarter, reaching a record 17 per cent PC market share. In the UAE particularly, Lenovo achieved a record overall market share of 27.9 per cent and continues to lead in portable PCs in the UAE,” Oliver Ebel, Vice-President and General Manager of Lenovo MEA, told Gulf News.
In addition, he said the quarter was a milestone in terms of our successes at Gitex Shopper 2014 and the launch of our new smartphone and tablets portfolio, which has led our achievements in the PC+ sphere. As a result of our success in the region, “we have increased our investments in the UAE and across MEA,” Ebel said.
Lenovo became the number one PC+ Tablet vendor for the first time ever, with 14.1 per cent market share, up 1.2 per cent year over year, a significant milestone that it met six quarters ahead of target.
During the quarter, Lenovo had record PC market share of 19.3 per cent in EMEA up nearly 44 per cent. Lenovo achieved the top position in PC across 16 EMEA countries, strengthening its number two position in the EMEA PC market.
Tablet shipments rose 30.6 per cent year-over-year to three million units, driven by sales outside China and strong performance in PCs, where for the sixth straight quarter Lenovo was the world’s largest PC vendor with a market share of 19.7 per cent.
“Lenovo had another strong quarter that saw excellent market share gains and profit expansion. Not only did we reach nearly 20 per cent share in PCs, we also became the number one in the broader PC+ tablet market for the first time. In May, we set this as a two-year goal, but achieved it in two quarters,” Yuanqing Yang, chairman and CEO of Lenovo, said it an emailed statement.
And in the last month, Lenovo successfully closed both Motorola Mobility and IBM x86 acquisitions. With these two deals, Yang said that Lenovo is now number three in both businesses, but “we are not satisfie”.
“We will replicate our success in PCs by outgrowing the market to challenge the top two. Mobile and enterprise are now our new growth engines, and over time, like PCs, they will become our profit pool as well,” Yang said.
Its smartphone shipments rose 38 per cent and remained at number four at the end of the third quarter with 5.2 per cent market share, although with the close of its Motorola investment, Lenovo has secured the number three position.
Lenovo has become the clear third with 8.7 per cent market share and 25.6 million devices sold. Motorola sold 8.7 million devices during the third quarter.
Lenovo’s goal is to sell 100 million mobile devices (80 million smartphones and 20 million tablets) by end of March next year from 50 million last year.
Laptops contributed 52 per cent to the group’s revenue, followed by desktops with 29 per cent and mobile devices by 13 per cent.
