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Lenovo rides renewed PC dominance to 21% profit growth

Fujitsu joint venture provides lift, while Chinese group's mobile woes soften

Lenovo scored a leading 24% share of the PC market by shipments for the third quarter, according to U.S. research firm IDC.   © Reuters

BEIJING -- Lenovo Group lifted net profit 21% on the year to $168 million for the July-September quarter, the company reported Thursday, as the Chinese tech firm reclaimed the crown in global computer shipments.

Revenue for the quarter climbed 14% to $13.38 billion, with 18% growth in the mainstay personal computer and smart device business.

Lenovo enjoyed sales growth in North America, along with the strong performance by its majority-owned PC venture formed last November with Japan's Fujitsu. Chairman and CEO Yang Yuanqing said the Beijing-Washington trade war is not greatly impacting his company's business development in the U.S.

Lenovo snagged a 24% share of the global PC market by shipments for July-September, American research firm IDC says. The company topped the 22.8% share garnered by U.S. rival HP and led the world for the first time since the fourth quarter of 2016.

In smartphones, the Motorola Mobility business recovered to the break-even point. Lenovo bought the operation from Google in 2014 for nearly $3 billion. Though its self-branded Lenovo business remained in the red, progress in cost reductions helped bring the company in view of finally achieving profitability for its mobile group, which has struggled to compete with rivals including Chinese compatriots like Vivo and Oppo.

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