A Lenovo is flying high. The result of the last fiscal quarter, presented on Thursday, 27, crowned the company’s current strategy and broke records in several areas of the company, which had solid growth. The company’s profit rose 6 more times in the period, exceeding analysts’ expectations.
Revenue increased 48%, to $ 15.63 billion, from $ 10.58 billion a year earlier. The business of computers continue to grow, with a 46% increase in annual sales, and the company achieved profitability in the smartphones – the company owns Motorola, one of the main brands in the segment in regions such as Latin America.
In an interview with EXAM, Lenovo’s director of operations, Gianfranco Lanci, explained the current moment the company is experiencing and the success disclosed on Thursday. For him, the sale of computers is still experiencing an increase generated by the pandemic, which showed that the computer is a personal device necessary for productivity.
“We have seen a huge increase in demand. Now it is one computer per person, no longer one computer per home. In some countries, the situation is so positive that we do not see a deterioration in demand,” he said, adding that demand should remain high. for at least 12 months and that the perception of computers has changed.
Computer manufacturers have a really heated market. The consultancy IDC indicates that 302 million devices were sold last year, 13.1% more than in 2019. The boom is driven precisely by the expertise of companies such as Lenovo, laptops: notebooks and mobile workstations accounted for the majority of sales, with 235.1 million handsets sold – 44% more than in 2019.
Data from Canalys consultancy point out that Lenovo continues to lead the sector with 24.5% of computer sales during the four quarters of last year, increasing its share recorded in 2019 and obtaining an 11.9% increase in sales.
Lanci says that Brazil is important for the company’s strategy, where there are two factories of the company. The country represents 42.3% of all sales made in Latin America and is one of the regions in which there is a solid presence of Lenovo in both computers and smartphones. The executive explains that the company has been working on the local portfolio to reduce the impact of the appreciation of the dollar on product prices, for example. In the first quarter of the year, local sales totaled US $ 657 million, an increase of 39.8%.
Profit us smartphones
In the competitive smartphone industry, which competitors like LG chose to stop operating, the result was also encouraging. The smartphone division’s revenue was a record since the acquisition of Motorola, 1.54 billion, with an increase of 86% in the annual comparison.
According to Lanci, the combination of investments in innovation and a solid portfolio helped this growth. The company has launched a foldable screen device in recent years and was one of the first to introduce products with 5G connectivity.
“There is a great opportunity for growth in the United States, up to double digits,” he says, adding that Lenovo is also eyeing the European smartphone market.
Lanci says that Lenovo is well positioned to deal with the microprocessor and component crisis that has affected several industries. For him, the problem is less in the processors and more in the integrated circuits, which are smaller and cheaper parts, but which can have an impact in the long run.
“What needs to be done is to plan with suppliers to achieve capacity and production,” he said. Lenovo has its own manufacture in 30 different locations, including two in Brazil, which, according to Lanci, guarantees flexibility and better decision-making capacity in the company. “It has been 3 quarters since the crisis [de semicondutores] and we are improving our results. “
Another division that has performed well after acquisition is that of storage and cloud computing services. In 2014, Lenovo bought IBM’s server unit in a $ 2.3 billion deal.