Lenovo sees $54.9 million net profit in Q1 earnings

Look out, world -- Lenovo's on a serious tear, and it doesn't look to be stopping anytime soon. In the company's latest earnings report, it proudly announced its first-ever double digital market share of 10.2 percent. As if that milestone wasn't enough to make upper management grin, the outfit also nailed down just under $55 billion in net income (a pre-tax income of $75 million) on sales of $5.1 billion. This quarter also marks the third in a row that it has been the fastest growing of the top five PC makers, and the fifth consecutive quarter that it outgrew the industry. Specifically, the outfit's PC shipments increased some 48.1 percent year-over-year, and consolidated sales for its fiscal Q1 saw an insane 49.6 percent uptick from last year.

source: Lenovo sees $54.9 billion net profit in Q1 earnings, hits double digits in global market share -- Engadget

Lenovo got my money, twice, in return for a T410 and a T410s

 

Maybe since Lenovo is in a good mood with the profit margins they wouldn't mind shelling out a little more for some better screens on their ThinkPads? Now there's a thought!

 

How can you have $55 billion dollar profit on $5.1 billion in sales?

 

Good eyes ZaZ, the article amount is wrong. It's actually supposed to be $54.86 Million not Billion. ( Source: BBC).

 

the report says $54.9 million profit (corrected by author) on a revenue of $5.1 billion dollars... now that Lenovo is cash rich, it should consider releasing a Zaz edition with 14.1 inch IPS, etc.... so that we can commemorate the occasion.

Now give us a S-IPS in the W70x update... i want to stare down the people using their HP 8740w, i feel bad that they have such a wonderful LCD, and we Thinkpadder whom supported Thinkpad all these years nothing.....

-----------------

I guess everyone at Lenovo must be cheering now.... Mark_Lenovo is also in a happy mood from his recent posts at Lenovo.com/forum and from the fact that he added me on his Twitter account...

I am happy for Lenovo too, i got my X200t for 1100 dollars, the way this is going i am going to get a W701ds for 1500 dollars, bring it on.

 

Yes, topped off with a special signature in the ThinkPad logo from the man himself to commemorate the Limited Edition run ThinkPad - Count me in!

Maybe they can call it the ThinkPad ZaZ-Series, it's got a nice ring to it.

 

we call it Xzaz edition....

 

still yet to see any thinkpad or ideapad in any major Australian retailers.

 

Coming soon to a Lenovo store near you...

 

ideapad can be bought in Smith Powerhouse, but they are a rarity now a days.

Lenovo Australia is really dragging its heel on expanding the target market segment and retail channels. Dell is really pushing the boundary in terms of getting the product out there to the customers through all the possible sales channel.... just look at Officework and how much Dell products they are selling.

If Lenovo want to claim back third spot in the computer industry, it has to expand to these retailers and also it has to offer more products outside of laptops and PC, i.e. higher quality LCD and LCD that can do more than just been a display for laptops and PC, i.e. use them as TV.

It would be pretty neat for Lenovo to sell an HD TV tuner box that can connect to the LCD or regular computers.....

They have to think outside of the square.

 

nice one how did you do this design? what software are you using?

 

I use Photoshop, but I must admit the really poor screen on my T61 makes color accuracy rather hard to do! At this rate I really need a XZaZ edition!

I added a template so anyone can customise their own version should they feel the need to create their own limited editions! - Template

 

Correct the title of the thread—it’s obviously very misleading/wrong…

 

Cool, I'm glad my thinkpad purchase could help them out.

Obviously.

 

one of the reason why China overtook Japan as the second largest economy. Finally Asia is back in correct order of power.

 

Huh? All because Lenovo posts a US$ 54.90 Million after-profit tax?

 

But per capita earning per person is still way behind..... while number 1 and number 2 may sound good, it doesn't reflect the actual per capita earning of each person....

Lenovo has some work cut out for itself to become the number 3 laptop company in the world. The fact that we are using Dell's LCD shows that Lenovo doesn't offer enough range of computer products outside of laptop and desktop.

Also, the fact that Chinese people in China has to reverse import Thinkpad from USA in order to get a reasonably priced laptop that is Made in China... i see something really wrong with that....

 

GDP per capita (nominal) is of the most inaccurate way of standard of living because it does not take into account the cost of living. Better of using GDP per capita (PPP).

compare Shanghai with Australia using GDP per capita (PPP), it is $21000 and $39000 respectively. As you can see, an average Australian can only purchase 1.85 times more stuff than an average Shanghainese.

Although as a whole nation, China GDP per capita (nominal) is only $4000USD atm, according to Goldman Sches, an average Chinese will earn $49000USD in 2050, $66000 for Japan and $90000 for s. Korea, $91000 for the USA, remember this is nominal, in terms of PPP, Asia will be much better off due to cheaper foods, accommodation and goods etc.

S. Korea will probably be the best place to live in 2050, due to extremely high income, low crime rate and hot girl bands.

 

That is projected growth rate, who knows what will happen in 40 years time.... there is too many possibility. Also, if China is rising in car, ship and electronic production, then what will South Korea do for income?

I can tell you that in Seoul the living expense is even higher than that of Tokyo... it is not really a city that you would want to live in, unless you have lot of money.

Regarding, Asia is better due to cheaper foods, accommodation and such... this is assuming that the agricultural output and housing supply will keep up the increased demand of the entire population. If every Chinese eat half as much meat as American, then the price of meat will skyrocket in the entire world... you just have to look at the projected production of meat in China over the next 20 years by the Meat and Livestock Australia report. Also, if more grains are diverted to producing meat, then the basic food price would also increase. China will be a net importer of meat in next ten years, like crude oil.

-------------------------------------------------

However, this got nothing to do with Lenovo projected growth, since it is not the only operator within the industry.... there are many other competitors it have to compete with. Also, is Lenovo able to sustain this growth into the future, with the current product lineup?

If Lenovo doesn't try to expand its presence within the netbook and consumer laptop market, then it would be in big trouble in terms of growth. While, the business laptops like X series and T series are great, they do not account for the biggest market share for laptop purchases made around the world.

HP is really pushing the Envy line of consumer laptops, and Lenovo currently has no real answer to this product.

I also see more people using HP DV series of laptop than Lenovo ideapad in Australia, because they are sold in more retail channels than ideapad.

 

isn't envy hp's version of "thinkpad", targeted at business users? correct me if I'm wrong.

 

No its more of a macbook clone. It doesn't have the full docking station like most profession laptops. HP's elitebook is like a thinkpad.

 

Envy is HP's answer to Macbook Pro, there are lot of similarity in design.

 

Lenovo is trying to make money in USA through volume and not absolute profit per machine. Unlike US Lenovo is hiking up the prices for laptops (which is not occurring since it would make them uncompetitive against other competitors), then the margin wouldn't improve.