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Growing Hybrid Work Trend Pushes PC Maker Lenovo To Record Profits For Q3

Growing Hybrid Work Trend Pushes PC Maker Lenovo To Record Profits For Q3
The world's largest producer of personal computers, China's Lenovo Group, reported a 62 per cent surge in its profits for its third quarter which reached an all-time high of $640 million on Wednesday. The record performance of the company was driven by the growing trend of hybrid work regimens which is driving up demand for PCs.
There was a 17 per cent growth in the revenue for the quarter ended December 31 to $20.1 billion which the company said was a record high for it and much higher than the $18.4 billion predicted by 10 analysts according to Refinitiv data.
During the third quarter, Lenovo noted, that worldwide demand for commercial PCs, excluding Chromebooks, surged at the third-fastest rate since 1998. Because of the increased popularity and prevalence of remote and hybrid working, consumers were purchasing more expensive, portable, and high-quality PCs.
"The hybrid work situation will continue even after the pandemic and more and more companies have announced they will have a hybrid working model," CEO and Chairman Yang Yuanqing said.
"That will help drive PC demand at least to keep current levels of around 340-350 million (a year)," he added, referring to a forecast consultancy IDC has made for demand through the years 2022-2025.
While a worldwide scarcity of semiconductors, one that has impacted a wide range of industries including automakers and electronic goods makers, remained a concern for the business, he said that there were initial signs that the situation was improving, and he expected the situation to get better, particularly in the second half of the year.
Lenovo also stated that it was on pace to meet its medium-term goal of boosting net income margins.
According to Gartner, Lenovo is the world's top PC manufacturer, with a 24.6 per cent market share of worldwide PC shipments in the fourth quarter of 2021, followed by HP Inc and Dell.
Lenovo proposed for a 10 billion yuan ($1.56 billion) share offering in Shanghai last year, but unexpectedly withdrew the proposal days after it was accepted by Shanghai's STAR market. Yang stated that there are no intentions to resubmit the application at this time.

Christopher J. Mitchell

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