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The popularity of hybrid work has provided Lenovo with record profits and revenues in the last quarter

The world’s largest PC maker, which controls almost a quarter of the market, reported the results of the third quarter of the fiscal year ended December 31. Lenovo’s profit rose 62% year-on-year to a record $640 million, while revenue also set a new record, up 17% to $20.1 billion, driven by growing demand for personal computers from corporate customers.

According to Lenovo representatives cited by Reuters , growth in demand for commercial PCs in the past quarter reached the third-highest level since 1998. So-called Chromebooks are not included in this statistic. Customers have begun to buy more expensive laptops and PCs, using them for hybrid work that combines work from home and being in the office. The shift in demand towards more expensive models can also be explained by the strategy of manufacturers in the face of a shortage of components – available stocks were directed to the production of more profitable configurations with increased added value. Buyers were forced to purchase PCs from stock, and more expensive models dominated the offerings.

Such specifics, in fact, can explain the dynamics of Lenovo’s revenue. According to company representatives, the relevance of hybrid work will not decrease even after the end of the pandemic. Demand for PCs will consolidate at the current level of about 340-350 million units per year, as IDC analysts expect in their forecast until 2025 inclusive. Component shortages in the second half of the year should be significantly reduced, according to representatives of Lenovo. The company is also not giving up on its goal of doubling its net profit margin in three years.

 

 

source: Reuters

 

 

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