Lenovo Group, the world’s third-largest PC maker since its recent $1.25 billion takeover of IBM’s PC assets, has reported a 12 per cent fall in its Q4 profit.
The company posted Q4 earnings of HK$166 million (US$21 million), compared to HK$188 million a year earlier. Analysts had expected the company to report a quarterly profit of HK$194 million.
The company has said that, in the wake of the acquisition, it will look to its new PC unit to jumpstart growth by expanding abroad at a time when growth in its domestic market – where it boasts the largest share of 26 per cent – is slowing, and where it faces stiff competition from Dell and Hewlett-Packard.
Lenovo has already announ-ced plans to establish a new innovation centre in North Car-olina that will enable customers, business partners, solution prov-iders and independent software vendors to collaborate on new PC solutions.
The company’s full year profit came in at HK$1.11 billion, 6 per cent up from HK$1.05 billion a year earlier.
Commenting on the results in light of the IBM deal, Lenovo CEO Stephen Ward said: "It is especially gratifying to note that our team at Lenovo-China continued to delight customers and increase both gross margin and market share while completing the acquisition of IBM’s personal computing division". (see ‘Playing catch-up’, page 25)