Lenovo Doubled Its Earnings But Fears a Global Slowdown

The manufacturer of personal computers Lenovo has nearly doubled its profit in the first quarter ended in June, standing at 108.8 million dollars against 54.9 million a year earlier and 78.6 million expected by analysts. The third global PC brand expressed concern about the impact of a slowing global economy.

Lenovo has been driven by strong sales in China and other emerging markets but faces the risk of a collapse in demand in Europe and the United States as it embarks on the tablets (Lepad) and smartphones (Lephone) alongside giants Apple and Samsung.

Lenovo makes 48% of its sales in China, where it is the industry leader with a market share of 31.7%, according to its own figures and those of IDC.

Worldwide, the market share of the group jumped to 12.2% against 9.9% in the first three months of the year.

“(…) The challenges facing the global demand for personal computers remain, such as the pace of recovery in the global economy and the continuing crisis of debt in Western Europe “, the group stressed in a statement.