Lenovo Advances by Leaps and Bounds

choi

Juro Osawa and Yun-Hee Kim, PC Firm Lenovo Hunts for Brazil Acquisitions; The Chinese company also is looking at a plan to add a manufacturing base in Brazil. Wall Street Journal, Aug 29, 2012.

Quote:

"The world's second largest PC maker, after Hewlett-Packard Co, also is evaluating a plan to set up a manufacturing base in Brazil so that it can produce PCs locally and avoid high import tariffs

"Lenovo [is] the biggest competitor in China's PC market with a 30% share

"Lenovo said it became the No 1 PC brand in India for the first time in the quarter that ended in March, with a 15.8% share.

"Mr Van Duijl said Brazil recently overtook Japan to become the world's third-largest market for PCs after China and the U.S. in terms of shipments.

"Lenovo's PC shipments in China rose 23% in the quarter, while shipments in other emerging markets jumped 50%. Despite the tough macroeconomic climate, the company's world-wide PC shipments rose 44% in the quarter ended March 31, compared with 5% industry-wide growth. In the quarter, Lenovo's net profit rose 59% from a year earlier to $67 million, while its revenue rose 54% to $7.5 billion, drawing a stark contrast with profit declines at H-P and rival Dell Inc.

"Mr Van Duijl said Lenovo will continue to focus primarily on PCs for growth in emerging markets such as Brazil, even though the company has been diversifying its offerings in China to sell smartphones and tablet computers, as well as smart television sets with Internet capabilities. Lenovo plans to spend about $800 million on a new facility in the central Chinese city of Wuhan to develop and produce smartphones and tablets.

My comment: The report arises from an interview with Milko Van Duijl, Lenovo's president of Asia-Pacific and Latin-America, Some data, like  revenue, profit and shipment, are in its 1Q12 financial report (which was released weeks ago). But its sale figures in regions (such as India, China) probably are not.