The company said that this business vertical was driven by Lenovo’s smart IoT strategy. Lenovo’s pre-tax income more than doubled (109 per cent) year-on-year to US$1,843 million for the same period
“Lenovo’s solid financial performance is the result of persistent execution of our transformation strategy. At a time of great global change – economically, socially and environmentally – we continue to focus on how we ‘intelligently transform’ ourselves and enable our many customers around the world successfully to do the same. I am proud of our strong results and confident in how we will climb to new heights in the future,” said Yang Yuanqing, Lenovo Chairman and CEO.
Business group overview
The Intelligent Devices Group (IDG), driven by Lenovo’s Smart IoT strategy, saw revenue grow by almost double digits for the full year (up 9.9 per cent) and pre-tax income more than doubled (109 per cent) year-on-year to US$1,843 million for the same period.
The PC and Smart Devices group (PCSD), one of IDG’s two business units, delivered a full year revenue of US$38.5 billion, with pre-tax income of US$1.98 billion. Lenovo’s official statement read, “Through customer innovation, Lenovo is the number one PC company in the world (according to IDC) with record market share of 23.4 per cent for the fiscal year and remains the fastest growing among the top five players (+9.5 per cent year-on-year). Challenging the status quo and rethinking form factors and user experiences have resulted in numerous technology breakthroughs in the past fiscal year, notably and most recently the May 13 announcement of the world’s first PC with a foldable screen.”
Lenovo’s Mobile Business Group (MBG), improved pre-tax income by US$464 million year-on-year and was profitable starting from the second half of the year thanks to a clear focus on selected markets, a competitive product portfolio and expense control.
Prioritized regions saw rapid growth, including a record share of 17.6 per cent in Latin America. In North America, volume outgrew the market by 59.2 points and in China by 185.8 points premium to market. In the rest of the world inventory was cleared with notable profit improved – paving the way for a return to growth.
The Data Center Group (DCG) achieved the fastest year-on-year growth since the acquisition of the x86 server business, growing 37 per cent with record full year revenue of US$6.02 billion. This was led by strong growth of the Hyperscale and Software Defined Infrastructure, which had revenue growth of 240 per cent and 96 per cent year-on-year respectively.
Lenovo remains number one in the world in performance with 139 world records, number one in x86 reliability and customer satisfaction according to ITIC (Information Technology Intelligence Consulting), TBR (Technology Business Research) and other industry benchmarks, and the number one provider of supercomputers in the TOP500 list.