updated 08:00 am EDT, Thu May 26, 2011
Lenovo outperforms market expectations
Lenovo has reported a strong fourth-quarter with its profit tripling on the back of higher than expected demand from commercial customers. Lenovo reported a net profit of $42.13 million for the period January to March, a boost of $12.8 million from the corresponding year ago quarter. This more than compensated for a slow down in consumer PC demand, the result of strong demand for tablet and smartphone devices.
"Momentum in commercial PC demand has gradually picked up, benefitting from the corporate refresh cycle, while consumer PC demand weakened due to a worsening macroeconomic environment and increasing competition from tablet products," the company said in a statement to the Hong Kong stock exchange.
The company has plans to counter the drop off in consumer demand by launching its own entries into the tablet and smartphone space. These include planned US launches of the IdeaPad Tablet K1 tablet and the LePhone.
Lenovo's shares were up .7 percent prior to the outperforming announcement. [via Reuters]