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Lenovo Soars
PC sales in China and high growth in smartphones sales helped boost Lenovo’s net profit for its fiscal fourth quarter by 90% year-over-year.
For the quarter ended March 31, Lenovo’s net profit was $127 million, the company said on Thursday. Revenue shattered records and was at $7.8 billion, growing 4% from the same period last year.
In Lenovo’s home market of China, the company had an operating margin of 4.9%, an increase of 8% year-over-year. The company also saw continued profitability in its mobile devices business, which makes up 9% of its overall sales. At the end of the quarter, Lenovo’s smartphone shipments were up 206% year-over-year.
Globally, PC shipments were down 13.9% year-over-year in the quarter, the market’s steepest decline since research firm IDC began tracking the market in 1994. Lenovo itself posted flat year-over-year PC shipment growth in the period.
Smartphone and tablet popularity have hurt PC sales, according to analysts. Computers running Microsoft’s Windows 8 have also failed to drum up consumer interest in the previous two quarters.
Lenovo, however, has managed to weather the slowdown by taking advantage of the Chinese PC market, where it has an over 30% market share. Close to half of the company’s revenue comes from the country, now the world’s largest PC market.
The company is now close to surpassing leading PC vendor HP for the top spot. The company had a 15.3% share of the market in this year’s first quarter, while HP had a 15.7% share.
But the Chinese PC maker also plans to focus more of its investment on tablets, smartphones and enterprise hardware, the company’s CEO Yang Yuanqing said in a statement. Earlier this year, Lenovo also reorganized its operations to sharpen the company’s branding and compete better in high-end products.
For the current fiscal year, Lenovo aims to ship 50 million smartphones, up from 30 million last year, Yang said Thursday in an earnings call. It aims to ship 10 million tablets, a five-fold increase from the previous fiscal year.
Most of Lenovo’s smartphone sales come from China, but the company has also begun selling handsets in the emerging markets of Russia, India, Indonesia, the Philippines and Vietnam. In addition, Lenovo is preparing to bring its smartphones to the U.S. and European markets, Yang said, without saying when.
Windows 8 For Tablets To Be Outed
There is a rumor circulating around the Internet that Microsoft will demo Windows 8 for tablets next week at All Things D and Computex. That said, Bloomberg is said to have cited a source from within Microsoft that confirmed Windows 8 tablet OS will be showcased at these events next week. They went on to say the tablet will be demoed using a Tegra based ARM processor.
Over the years Microsoft has totally dedicated their Windows operating system to x86 based processors, specifically Intel and AMD. However, things have changed as smartphones and tablets use has skyrocketed using non x86 processors. This trend left Microsoft no choice but to join the ARM party or be left totally in the dust. As Microsoft showed off the new features in Windows Phone Mango update this week; they were also in the process of getting the tablet version of Windows 8 out as soon as possible.
Windows/ARM Tablet Out By December
May 27, 2011 by admin
Filed under Around The Net
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Analysts around the Internet are saying that Windows based tablets will begin using ARM processors by the end of 2011.
Digitimes is saying that the system performance will mean that the platform will be mainly used for targeting the tablet PC market. Digitimes said that there are several problems which need to be solved with the idea and most notebook makers are wary about it.
Microsoft Rebukes Intel
Microsoft is pouring water on Intel’s assertions that legacy Windows current programs won’t operate on Windows 8 for ARM processors. Yesterday, Intel made the claim and Microsoft’s Steven Sinofsky came to the rescue of Microsoft and said that Intel’s statements were “factually inaccurate and unfortunately misleading.” Mr Sinofsky went on to say that Microsoft’s development goals were clear and that the technology was still in its demonstration stage. That was an extremely vague statement right? So Microsoft is still working out the kinks.
We also need to say that Sinofsky never gave any hard-core specifics and there was never any clarification as to what Intel’s error was in their statement.
Windows 8 Coming To Arm
Yesterday Microsoft said they have their next iteration of the Windows OS running on a 1GHz ARM processor. If you remember earlier this year Microsoft stated that they were working hard to introduce a version of their Windows OS for the ever increasing popularity ARM architecture.
While Microsoft takes a breather from the x86 architectures to focus on ARM; the calculated move gives Microsoft access to hardware running Nvidia’s Tegra, Qualcomm Snapdragons, and Samsung Hummingbirds which may help Windows grow even more. Therefore, it appears that the tranquil relationship between Microsoft and Intel aka Wintel alliance, is starting to show cracks.