Lenovo Profit Nearly Doubles, Defying Global PC Slump
May 23rd 2013 7:05AM
The news about Hewlett-Packard Co.'s (NYSE: HPQ) earnings may have been better than expected, but they cannot compare nearly to PC maker rival Lenovo. For some reason it has managed to dodge much of the downturn in global personal computer sales, perhaps because its costs of labor are low. The China-based company reported, according to Bloomberg:
[T]he world's second-biggest maker of personal computers, reported a 90 percent gain in fourth-quarter profit after increasing its market share and boosting smartphone sales.
Net income climbed to $126.9 million in the three months ended March, from $66.8 million a year earlier, Lenovo said in a statement today. That beat the $108.1 million average of eight analysts' estimates compiled by Bloomberg.
Lenovo is developing mobile devices such as smartphones and tablets as it seeks to lure customers from Apple Inc. and Samsung Electronics Co. and weather a global slump in demand for PCs. The company maintained PC sales and expanded market share in the quarter, even as global shipments dropped 13.9 percent, researcher International Data Corp. reported in April.
Filed under: 24/7 Wall St. Wire, Earnings, PC Companies Tagged: HPQ