Lenovo defies gloom to become world’s biggest PC manufacturer

CHINESE computing behemoth Lenovo recorded a 10 per cent increase in PC shipments in the three months to the end of September yesterday, a boost that is expected to mean it has overtaken Hewlett-Packard (HP) as the world’s biggest PC manufacturer.

The company, which has been rapidly gaining market share as US and Japanese rivals see falling sales, reported a record quarter in which revenue rose 11 per cent year-on-year to $8.67bn (£5.43bn).

Global PC shipments were up 10.3 per cent, in a market that has shrunk eight per cent as more people purchase smartphones and tablets instead of buying new PCs.

The company added that its smartphone business, which is mostly confined to China, was profitable for the first time.

The company has become a market leader due to its reliable, low-cost laptop computers. US rivals HP and Dell have struggled to compete on price. Lenovo could be boosted further by the recent release of Microsoft’s new operating software, Windows 8.

“As emerging markets outside of China and mature businesses have entered the profitable growth stage, and as our smartphone and [other businesses] continue to grow, Lenovo’s overall profitability will continue to improve,” the firm’s chief Yang Yuanqing said.