Lenovo Bucks PC Slump With Strong Q4, Full-Year Results


Despite the woes of the PC market, Lenovo just keeps on climbing.

The Chinese computer maker reported record revenue for both its fourth-quarter and 2013 full-year results, thanks to strong PC sales. Lenovo posted fourth-quarter sales of $7.8 billion, a 4 percent year-over-year increase, and full-year revenue of $34 billion, a 15 percent improvement from the previous year.

Lenovo's fourth-quarter earnings increased 90 percent to $127 million, while full-year earnings reached $635 million, a 34 percent increase from the previous fiscal year. The company also said it reached record PC market share with 15.5 percent, inching closer to the No. 1 spot held by HP.

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Lenovo's PC shipments grew 10.2 percent for the year, which the company compared to an 8.1 percent industry decline in PC shipments over the same period. While much of Lenovo's growth has been fueled by sales in China and emerging markets, the company reported a 9.8 percent increase in North American PC shipments for the fourth quarter.

Lenovo's numbers are a stark contrast to the overall PC industry, which has been in decline. Last month, both IDC and Gartner reported the steepest quarterly decline in worldwide PC shipments for the first quarter.

As for its smartphone and tablet businesses, Lenovo said those product categories are growing, too. Worldwide tablet shipments grew 74 percent for the year.

Meanwhile, the company's smartphone shipments increased 206 percent year-over-year. Lenovo hasn't yet released smartphone products in North America, but Lenovo executives have said in the past that they intend to bring devices to the region and other mature markets at some point in the future.

"Despite a challenging macro-economic environment and ongoing PC industry transformation, Lenovo delivered a strong performance in the 2012/13 fiscal year," said Lenovo Chairman and CEO Yang Yuanqing in a press statement. "Not only were we the fastest growing among all major PC players, with record market share, revenue and profitability, more importantly, our smartphone and tablet businesses saw dramatic growth."

PUBLISHED MAY 23, 2013