Dell Inc. (DELL), Hewlett-Packard Company (HPQ): One PC Maker Is Blowing Away the Competition

Page 1 of 2

There is no doubt about the fact that PC makers are struggling to sell their products, as a result of the growing popularity of mobile devices. With the industry in turmoil, many PC hardware manufacturers are in serious trouble. However, there is one Asian manufacturer that is easily outpacing the industry in terms of growth. Lenovo has been performing very well despite weakness in the broader market, which is impressive to say the least.

Lenovo Group Limited (ADR) (NASDAQOTH: LNVGY)Introducing Lenovo

Lenovo, listed on the Hong Kong Stock Exchange, but based in the United States, produces desktops, laptops, and a range of other IT products and accessories. The stock has a market cap of about $9.4 billion and is up some 6.5% in the last twelve months. The stock yields around 2.1%, and has a beta of 1.64. The company has roughly 27,000 employees and markets its products in over 160 countries worldwide.

Latest Earnings Report

Lenovo really knocked it out of the park for the latest quarterly report, with record income, sales and market share. Sales came in at $9.4 billion, up 12% from the period a year earlier. Global PC shipments grew 7.9%, in a global market that was down 7.8%, the 15th consecutive quarter of outpacing the industry. The company moreover achieved its highest ever market share of 15.9%, gaining in every region.

The company’s “protect and attack” strategy, in which it tries to strengthen its solid markets and at the same time attempts to take advantage of new opportunities, is clearly paying off. Net income of $205 million represented an increase of 34%, with operating profit increasing by 26%. Geographically, China is still growing quickly with a 17% increase in sales. The company also performed well in North America, with PC shipments up 11% in a market which dipped by 7%.

The firm made a number of strategic acquisitions lately to solidify its position, after announcing a strategic partnership with EMC to create a server technology development program. Recently, the company acquired CCE, a Brazilian PC and electronics company, in order to boost its position in this important market. It also bought Stoneware, a US cloud computing company. Aside from a being a sign of the firm’s health, these acquisitions should aide Lenovo in staying ahead of the competition in terms of growth.

Outpacing the Competition

Other PC makers haven’t nearly been delivering the same kind of growth that Lenovo is achieving at the moment. Dell Inc. (NASDAQ:DELL) recently came out with a fairly dismal earnings report, with a 9% decline in PC sales and a disastrous drop in earnings. The company, currently battling out a takeover attempt, has been suffering from poor sales results for a while now, and is at the moment considering a renewed focus on its Enterprise Solutions business which has been performing quite well.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!