Lenovo Gain 25% Profit

The profit of China’s largest computer manufacturer, Lenovo Group Ltd., exceeding the previous predictions, after rising 25 percent during the third quarter. The increase in profit is due to the many consumers who exchange their old computers, as well as the PC component prices.

Lenovo’s net income increased to USD99, 7 million over the last three months of 2010. The year before, in the same period, Lenovo only earn USD79, 5 million. Lenovo’s total revenue far exceeded some analysts’ estimates peg the figure only USD86, 1 million. Similarly, as reported by Business Review, on Thursday (02/17/2011).

Lenovo has a larger market share than its rival, Acer Inc., after receiving more orders from business people in China, the US and Europe. Most consumers want to buy a computer that runs with Windows 7 in order to replace their old systems. Besides, Lenovo also has experienced increased sales in these markets are growing like Russia and India.

"Companies have benefited from high demand in the commercial segment in the market," said Vincent Chen, an analyst from Yuanta Securities. Furthermore, he said, declining prices of components such as memory chips, will help to increase the profit of computer producers.

The company is headquartered in Raleigh, North Carolina was responsible for 10.4 percent of the world’s PC shipments during the last quarter. In fact, last year they only recorded 8.8 percent. Meanwhile, Hewlett-Packard Co.. which became the number one in its category market share has decreased from 20.2 percent to 19.5 percent. Acer gains, which are third, also down from 12.8 percent to 10.6 percent.

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