Lenovo PC sales in GCC expand 12.2% in 2020

Lenovo captured 26.5 per cent of the GCC PC market share in Q4 2020. The company witnessed 12.2 per cent growth in PC shipments across the Gulf year-on-year, financial results show.

Globally, Lenovo Group announced revenue in the third quarter of $17.2bn, up 22 per cent year-on-year. Its Q3 pre-tax income was up 52 per cent year-on-year to $591m, while net income also increased by 53 per cent year-on-year to $395m. Basic earnings per share for the third quarter were 3.31 US cents.

Lenovo’s Intelligent Devices Group (IDG) had revenues of $14bn, up 27 per cent year-on-year, were accompanied by PTI up 35 per cent year-on-year to $925m and a record profit margin of 6.6 per cent.

The Data Center Group (DCG) achieved record revenue of $1.63bn thanks to across-the-board growth while improving profitability by almost a point year-on-year. The Cloud Service Providers and Enterprise/SMB segments delivered year-on-year growth at a premium to the market. Enterprise/SMB reached $1bn in revenue, the highest amount in over three years, while Storage had record revenue and outgrew the market by 11 points. Revenue in Software-Defined Infrastructure and Services reached a new record too, the company’s financial results show.

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Lenovo’s Intelligent Transformation businesses continued to make strong progress as total Software and Services revenue grew almost 36 per cent to a new record of almost $1.4bn – over 8 per cent of total group revenue. Revenue of Attached Services, Managed Services and Solution Services achieved year-on-year growth of nearly 26 per cent, 73 per cent and 49 per cent respectively, while Device-as-a-Service delivered high double-digit growth (74 per cent) year-on-year. Also, e-commerce revenue grew almost 45 per cent year-on-year.

“The delivery of yet another record-breaking quarter is a reflection of our innovative product portfolio and operational excellence, which drove growth across all businesses,” said Yuanqing Yang, Lenovo chairman and CEO. “Clearly, 2020 was a challenging year that brought remarkable changes to our world, yet Lenovo quickly responded to the changing market driven by new work and lifestyle trends and delivered strong results. Now, as we begin to see the results of our transformation investments, we will further invest in technology and innovation, drive intelligent transformation across industries, and create sustainable growth.”