Finding the sluggish PC market a big challenge? If it’s any consolation, Lenovo — the world’s PC shipment leader — does too.
Lenovo today reported financial results for its second quarter ended Sept. 30. The supplier said that in the quarter, it shipped 14.5 million PCs. Yes, that’s a big number. But it also represents a year-on-year decline for Lenovo of 3.2 percent.
Lenovo’s overall PC and smart devices group, which covers both PCs and tablets, reported financial results that were even worse. The group’s Q2 revenue was $7.8 billion, a year-on-year decline of 8 percent.
However, as Lenovo is quick to point out, its 3.2 percent PC revenue drop still outpaced the overall PC market, which declined in Q2 by 4.8 percent.
Lenovo’s overall corporate results for the quarter were mixed. On the one hand, the company reported total Q2 revenue of $11.2 billion, a year-on-year drop of 8 percent. Not good. On the other, Lenovo reported a quarter net income of $157 million, much better than its year-earlier net loss of $714 million.
Like many other PC suppliers in today’s changing market, Lenovo is broadening its range. Reuters just reported that the company’s CEO, Yang Yuanqing, said in a related filing that Lenovo is exploring business opportunities in, among other things, smart homes/offices/healthcare and AI.
To be sure, Lenovo is still committed to PCs. As of this year’s third quarter, Lenovo is the No. 1 supplier by units shipped, according to IDC, with a 21 percent market share worldwide. In just the U.S., Lenovo is No. 3. It trails both HP and Dell, with a 15 percent market share, also according to IDC. In addition, Lenovo says it may take over Fujitsu’s PC business. That would allow the Japanese company to focus instead on IT services and other businesses.
New Execs Brought In
Also today, Lenovo announced that it has hired three executives from other companies and moved around some others:
> Kirk Skaugen, formerly senior VP for client computing at Intel, has joined Lenovo as executive VP and president of the data center group. Gerry Smith, the former executive VP of Lenovo’s data center group, moves to become head of PCs and smart devices.
> Laura Quatela, the former executive VP of intellectual property at Alcatel-Lucent, has joined Lenovo as chief legal officer and a senior VP.
> Yong Rui, formerly deputy managing director of Microsoft Research Asia, has joined Lenovo as chief technology officer.
Lenovo also moved its former senior VP for mobile business in China, Xudong Chen, to become senior VP of global services. Filling his former position as head of mobile business in China is Gina Qiao, a long-time Lenovo executive whose previous titles include VP of HR and chief strategy officer.
Companies don’t make these kinds of executive changes because they enjoy it. The PC business is challenging, and Lenovo’s feeling it big-time. How about you?
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