LyrArc Article Gist
Lenovo shows a profit of $129 million for this fiscal year compared to a net loss of $226 million in the prior year. Revenues in the 1st quarter of 2010 went up to $4.32 billon from $2.77 billon with proft at $13 million. Margins are still under pressure because of growth in the lower priced PC market segment. Gross margins fell to 10.4% this year. To diversify Lenovo has introduced the Le Phone with China Unicom (Hong Kong) and sees sales of its mobile phones exceeding Apple's iPhone sales. It has also developed a prototype of a tablet PC in January 2010.
PC shipments in China of $2 billon account for 45% of 3rd quarter revenues- up 67% in China's fast growing PC market. And Lenovo's plan is to expand sales in India, Russia and Turkey, from the current 5% in the fourth quarter ending March 31, 2010, to double digits.