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Lenovo's Q1 shows 'record high' market share, profits up 30 percent to $141 million
After delivering an overachieving laptop, Lenovo has delivered financial results that also exceeded expectations, producing $8 billion in revenue and $141 million net profit. Those figures are up 35 and 30 percent respectively over last year, which the company has chalked up to a higher than ever market share of 15 percent. That growth came in part from a 59 percent sales bump in emerging markets like India and Brazil, on top of a 9 percent spurt in its home market -- lifting the company 24 percent in world-wide PC shipments for the quarter. Lenovo has also become the second largest player in China's smartphone market, after Samsung, now up to a 13 percent market share. CEO Yang Yuanqing also proclaimed that, unlike other Redmond partners, he wasn't stressed about Microsoft's Surface tablet -- and that his company had "much better hardware" than the software giant.
Lenovo beats PC market with 46 percent profit surge
Yep, it's party-time in Beijing once again. While the PC industry as a whole reportedly grew by a tight handful of percentage points over the past year, Lenovo has somehow managed to continue its long-running growth spurt, with shipments up 44 percent and operating profits up 46 percent. Sales of both laptop and desktop (including IdeaCentre all-in-ones) grew roughly equally, helped along by blossoming demand in emerging markets, while fledgling smartphones and tablets also proved popular in Lenovo's homeland. The manufacturer reckons it's now second in command of the market behind HP, although it conveniently disregards Apple's iPad from its ranking.
HP reclaims top spot in PC sales, market as a whole climbs 21 percent
Well, Apple's reign atop the list of the world's top PC makers was short lived. After clawing its way into the lead, if you counted the iPad as a PC, HP is back atop the heap -- even with Cupertino's tablet-inflated numbers. According to Canalys, the Palo Alto company shipped 15.8 million units in the first quarter of 2012, barely sneaking passed Apple by 40,000 computers. Of course, remove Apple's 11.8 million iPads, and it's not even a competition. Lenovo, Acer and Dell rounded out the top five, with the total market shooting up 21 percent over the same time last year. However, there is plenty of reason to believe we won't see client PC fly out the door at such an incredible rate. Amazingly, according to Canalys, tablets accounted for 40 percent of all PC shipments in the US. For more details check out the PR after the break.
China inches ahead of US in PC sales for the first time
We may be living in a "post PC" world according to some, but PCs are unquestionably still big business, and they're now a bigger business in China than anywhere else. That's according to the latest report from market research firm IDC, at least, which found that both PC sales and shipments in China inched ahead of those in the US for the second quarter -- the first time that's ever happened, and earlier than IDC had previously projected. In terms of hard numbers, that translates to sales of $11.9 billion in China (compared to $11.7 billion in the US), and shipments of 18.5 million units, which represents a 14.3 percent jump year-over-year (as opposed to a 4.9 percent drop to 17.7 million units in the US). Not surprisingly, Lenovo is the big winner in all of this -- it's both the top PC maker in China and the fastest growing one, with a market share just shy of 32 percent.
IDC and Gartner: US PC sales still sluggish, Apple, Toshiba see jumps in market share
IDC and Gartner have once again released dueling reports on the state of the PC market and, according to their numbers, the landscape's looking a little different. Gartner estimates that overall PC shipments during Q2 of this year increased by 2.3 percent from the same period last year, more or less concurring with the 2.6 percent global increase that IDC found. Things are looking a bit bleaker in the US, however, where quarterly year-to-year shipments are down (5.6 percent for Gartner, 4.2 percent for IDC), but have increased from Q1 of this year. On the corporate level, HP continues to dominate global shipments according to both reports, followed by Dell and Lenovo, which overtook Acer for third place. Stateside statistics, on the other hand, show a bit more severe shuffling among the top five, with Apple's US market share jumping to nearly 11 percent (good for third place) and Acer tumbling to fifth, thanks to a greater than 20 percent year-to-year decline in market share (see the table, above). In fact, among the top five, only Apple and fourth-place Toshiba increased their market share from Q2 of 2010 -- something that both research firms attributed, in part, to a weak consumer PC market and the rising popularity of tablets, led by the iPad. For a more thorough statistical breakdown, head past the break for a pair of comprehensive press releases.
ARM CEO says netbooks could eventually grab 90 percent of PC market
Think netbooks are on their way out? Not according to ARM CEO Warren East, who said in a recent interview with PC Pro that while netbooks now only represent 10% or so of the PC market, he believes that "over the next several years that could completely change around and that could be 90% of the PC market." Obviously, he also thinks that would be a huge boon to ARM, and notes that while the main CPU in most netbooks may not be an ARM processor, there are probably at least two or three ARM chips of some sort in each netbook sold. In fairness, we assume that East means netbooks will evolve significantly from their present state over those next several years -- but, still, ninety percent? Update: In the company's earnings call preceding the interview, Warren East also dropped a few tidbits about ARM's roadmap, noting that, "Cortex-A9 will comfortably run at those sorts of frequencies (1GHz) and, indeed, with physical IP optimization, we demonstrated can scale up to 2 gigahertz today." East further added that the "other Cortex-A9 has a lot more headroom to go, it's a multi-processor design, so you can have quad-core -- or up to quad-core implementation."
1C Games: 'Retail is forcing PC games out'
Russian publisher 1C Games is the latest in a long line to declare that the PC games market is dying, and its international publishing director Darryl Still tells MCV that retailers are holding the murder weapon. Still says that the drive to digital distribution these days isn't just due to gamer preference, it's due to the fact that retailers aren't supporting PC games the way they should. "You just have to head into a games store and look for their PC titles," he says, "and you'll see there is no focus, listings or promotions for them." Still says that he predicts the PC market will be completely digital as soon as 2011, two years ahead of estimates that say 50% of PC games sold in 2013 will be digitally delivered. He says that there's more profit to be made with PC games at retail, but that with all of the different providers aiming to release PC titles digitally, retailers very soon won't bother carrying them at all. We're torn -- for every treasured cloth map in a retail box, there are good reasons to stick with digital as well.
Cheap netbook sales bringing down laptop revenues, no brainers require no brains
Hey, this is probably surprising to no one, but here we go. A new market research report from DisplaySearch says that the overall mobile PC market is down about 5 percent over last year. The main reason cited for this decline? The increasing popularity of netbooks, which average around $300, and are much, much cheaper than traditional laptops. Netbook revenue is up 264 percent from last year, and have contributed to an overall lowering of the average PC cost by 19 percent. While this is certainly bad news for the PC industry itself, hooray for all of us, right?!
Steelseries partnering with Best Buy, credits WoW for growth
We've heard before about World of Warcraft strutting up the PC gaming market before, but could this game also be holding up the PC game accessories market? Seems that way for Steelseries -- they're the makers of the WoW mouse that we've mentioned (the one that might not be quite kosher with Blizzard's Terms of Service, use with caution). They've just recently inked a deal with Best Buy to carry some of their products (including the WoW mouse), and World of Warcraft played so much of a part in the deal that CEO Bruce Hawver credited Blizzard's MMO with creating his "high-quality gamers": "The way I used to pick up the phone after school, now, kids log into World of Warcraft and chat... Online gaming might cost $14 to $18 a month – less than a single movie visit for two people."It does follow -- if WoW is one of the only reasons left for people to spend money on PC games, it does seem that it would be one of the only reasons for them to spend money on gaming accessories. High-end mice and keyboards use to be the domain of the FPS player -- guys like Fata1ity pimped their own lines and all the mice bragged about their resolution and ease of use. But the PC market has changed, and MMOs are the game of the day now -- everything is about squeezing function into as many buttons as possible and reaching this 11 million player group roaming around Azeroth. If Steelseries and other accessory manufacturers want to sell their products, they've got to try and sell them to us.
