Beijing-based Lenovo, which acquired IBM Corp.'s PC unit in early 2005, said February 1 it earned US$57.7 million (euro44.3 million) in its third fiscal quarter on sales of US$4 billion (euro3 billion), but North American revenues fell amid intense competition. The company is making progress in efforts to build its brand abroad but has yet to become a major competitor outside China, said senior vice-president Mary Ma.
Lenovo has struggled to become a global competitor since buying IBM's PC unit in a US$1.25 billion deal. Lenovo's share of the global PC market rose marginally to 7.4 per cent, while market share in China, where it is the No. 1 brand, expanded to 36.2 per cent, the company said.
Lenovo's shipments to China grew 17 per cent compared with the same quarter of 2005. China accounted for US$1.6 billion (euro1.2 billion) in revenues, or 40 per cent of its worldwide total.
Shipments of notebook computers grew 20 per cent to US$2.1 billion (euro1.6 billion), or 52 per cent of total revenue, the company said.
But shipments in the key North American market fell four per cent, contributing US$1 billion in revenues, or 26 per cent of the total. (Source: Joe Mcdonald, Canadian Press, Feb 2, 2007