Lenovo's Quarterly Profit Swelled 90 Percent on Record PC Sales

Don't tell Lenovo the PC market is in a slump. The OEM apparently hasn't gotten the memo, and as they say, ignorance is bliss. In this case, it's also quite lucrative. Lenovo this week announced record full-year sales of $34 billion, up 15 percent year-over-year, and record earnings of $635 million, up more than a third compared to last year.

Lenovo's record-setting behavior didn't stop there. It's fourth fiscal quarter revenues grew 4 percent to $7.8 billion. What makes those numbers even more remarkable is that the industry average among PC makers was a 13 percent year-over-year decline. This is the 16th consecutive quarter Lenovo has been able to buck the trend.

The OEM said it shipped a record 52.4 million PCs to claim a market-leading 15.5 percent share of the global market. As a result, Lenovo's profits soared 90 percent in Q4.

Lenovo Laptop

"Despite a challenging macro-economic environment and ongoing PC industry transformation, Lenovo delivered a strong performance in the 2012/13 fiscal year. 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," said Yang Yuanqing, Lenovo Chairman and CEO. "In fact, smartphone shipments were 3.7 times greater than last year globally and we are now number two in the China smartphone market. This has laid a solid foundation for the successful transformation of Lenovo into a PC Plus leader. Going forward, we will focus our investments on the fast-growing tablet, smartphone and enterprise hardware areas, while working to enhance the profitability of our core PC business. We are very confident in our ability to achieve success in these new areas, just as in the PC business."

To say Lenovo is firing on all cylinders is an understatement. Somehow or another, the company continues to defy the industry. For example, Lenovo's desktop PC shipments were flat worldwide year-over-year, which doesn't sound all that impressive until you realize that the industry as a whole declined 12.2 percent.