Lenovo Group has reported record Group revenue in the second quarter of US$14.5bn, up 7% year-on-year and with all businesses showing strong growth. Profit showed even stronger growth, with record pre-tax income of US$470m, up 52% compared to the same quarter a year earlier, while net income also increased by 53% year-on-year to a record US$310m.
“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 (pictured), 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. We will continue to leverage our core competences of operational excellence and global/local footprint, while accelerating our service-led transformation to better grasp opportunities and drive sustainable growth.”
2020 continues to be a year with multiple industry factors impacting supply and manufacturing, including the ongoing geo-political uncertainties, the global COVID-19 pandemic, and industry-wide component supply shortages driven by strong demand. However, Lenovo 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 expects 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.
Lenovo’s Intelligent Devices Group (IDG) continues to lead the Group’s growth with all-time record revenue for the PC and Smart Devices Group (PCSD) of US$11.5bn, up 8% year-on-year.
