Lenovo Sales Rise 17 Percent on Strong Global PC Demand

Lenovo Group, the world's fourth-largest PC maker, reported a 17 percent jump in sales for the last fiscal year, led by continued strong PC demand in China and other markets.

Lenovo's sales for the fiscal year ended on March 31 were US$16.4 billion, while net income was $485 million, the company said in a filingwith the Hong Kong stock exchange. By comparison, the company had sales of $14 billion and net income of $161 million in the preceding fiscal year.

China, Hong Kong and Taiwan together accounted for 37 percent of Lenovo's sales during the fiscal year, with unit shipments of computers up 27 percent compared to the previous year. Lenovo said a strong Olympics marketing program helped to push Chinese sales higher.

Other regions also clocked solid growth for Lenovo. The Americas, Lenovo's second-largest market, accounted for 28 percent of sales, with shipments rising 13 percent during the fiscal year. Europe, which represented 13 percent of Lenovo's sales, saw shipments grow at a faster rate, up 23 percent over the previous fiscal year. Asia, which accounted for 13 percent of sales, saw shipments rise by 18 percent.

Laptops made up the bulk of Lenovo's sales, at 58 percent, but desktops also turned in a strong performance. Lenovo saw desktop shipments rise 13 percent during the fiscal year, much faster than the 4 percent increase in desktop shipments for the market as a whole, Lenovo said.