Lenovo records record profits; thinks Windows 8 will drive PC demand

Lenovo was one of the biggest supporters of the Windows 8 launch in October as it introduced a number of new touchscreen-based notebooks, tablets and convertibles. It continued that support earlier this month by announcing a bunch of upcoming Windows 8 products at CES 2013, including the impressive looking 27 inch IdeaCentre Horizon Table PC all-in-one, which will be able to be laid flat to serve as a really big tablet (kind of).

To support Lenovo's bet on Windows 8, it looks like the company has managed to sell a lot of PCs in the fourth quarter of 2012. The China-based company announced today that for the last three months of the year, it had revenues of $9.4 billion, up 12 percent from the same period a year ago. Net profits came in at $205 million, up 34 percent from the same period a year ago.

Lenovo said it shipped 14.1 million PCs during the fourth quarter, up 7.6 percent. This is in contrast to the overall PC market, which saw shipments go down for the same quarter. CNet.com reports that during the company's conference call with analysts, Lenovo's chairman and CEO Yang Yuanqing was upbeat that Windows 8 will help the company continue to grow in the new year, saying, "New technologies like Windows 8, ultrabooks, and convertibles will drive new demand. 2013 will be better than 2012."

It just goes to show that if you have a company that makes products that people want to buy and use, you can still be successful even though the market contracted during the same time period. It also shows that the launch of Windows 8 was perhaps not as slow as certain companies, such as Acer, would lead people to believe.

Source: Cnet.com | Image via Lenovo

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Lenovo makes good computers, I own few and I am happy with their durability as well as reliability interns of hardware.

I didn't chose Lenovo because of any specific software related reason since i am from PC platform, choice between different vendors are dependent on the quality hardware and after sales service.

Personally,
I don't give a rats butt what Lenovo thinks as I know what I think and I think Windows 8 AND Lenovo are BOTH junk!!

I've had 2 Lenovo laptops and both are total POS's compared to either of my HP's or my Toshiba.

Unlike Acer, Lenovo has brought awesome products to the table. Can't attribute this all to the Yoga line, but overall they have seem to be the biggest supporters of Windows 8 and rightly so are reaping the benefits of such a relationship.

Actually Lenovo has had some great designs for a while. I loved their think idea centers and their mini HTPCs were very well designed. Just a bit underpowered for the price, under-marketed, and it took a while for Lenovo to shake the perception problem they may have had with regards to quality. Looks like they have hit their stride. Well deserved. The PC market is without a doubt, under-designed

Not to rain on their parade, I purchased a Lenovo that came with Windows 8, I had no choice in this matter.

I didn't get the laptop because it had Windows 8, I got it because out of all my searching the Lenovo I got looked nice, had awesome specs and was very well priced, Windows 8 being on there was more of a hassle than a benefit, it was promptly replaced with Windows 7.

I think their low price point is probably more of a selling factor here, not Windows 8.

Obviously it's not purely price, and that's not what I meant, I mean price vs look vs quality.
The Acer machines look and feel cheap, a lot of Lenovos are cheap but look nice and are very solid.

JaredFrost said,
Obviously it's not purely price, and that's not what I meant, I mean price vs look vs quality.
The Acer machines look and feel cheap, a lot of Lenovos are cheap but look nice and are very solid.

Of course on non-touch devices Windows 8 will not be a selling point. Although I got to say you should have given it a chance. I use it on my non-touch laptop as well and If I dont have to then Ill never switch back to the old UI. Works fine on non-touch, just different then you're used to.

I think what Lenovo is saying is that they believe in touch and mobility as the future of the PC market (not exclusively but for many mainstream consumers it is enough). So Windows 8 is helping them sell their more modern devices.

Ronnet said,

Of course on non-touch devices Windows 8 will not be a selling point. Although I got to say you should have given it a chance. I use it on my non-touch laptop as well and If I dont have to then Ill never switch back to the old UI. Works fine on non-touch, just different then you're used to.

I think what Lenovo is saying is that they believe in touch and mobility as the future of the PC market (not exclusively but for many mainstream consumers it is enough). So Windows 8 is helping them sell their more modern devices.

I never said I didn't give it a chance, I tried and tried, it was too simple, plain and annoying for me to like, and I cannot support their direction of removing choice from Windows, all previous versions out of the box gave you a choice to use a new interface, even if I loved the new UI that alone would be enough for me not to use it.

Personally I don't see much of a market for desktop type touchscreen PCs either, there's one thing you can count on in human beings, and that's being lazy, sitting at a desk with your arms extended to use a PC will not go over well with the general public in a desk + PC setting, I see touch on a desktop PC as more of a gimmick, like 3D HDTV in it's current state.

I only see a good market for smaller touch devices, where people can sit/lay on the soda and play rinky dinky games, read email and check facebook, and there are some people that dont do anything other than that, for them it's all they'll get.

I don't see touch -as the future of the PC market- I see it as the future of mom and pop computing, playing rinky dinky mobile games and basic computer functions.

PS: These are all my opinions so I don't want anyone getting their panties in a bunch over them.

Anybody know if Lenovo is going to re-release the Yoga 13 with the new Ivy Bridge processors which use less power in the near future? That seems like a nice laptop to me

Good for Lenovo - they've invested in making high-quality products that showcase the best of Windows 8, and they've been rewarded for it. some other OEMs (*cough*Acer*cough*) might want to start taking notes.

I love my lenovo laptop. Our company was buying Lenovo laptops for awhile, and just recently switched back to DELL. I'm going to be resisting an upgrade for awhile...

Weird a company that continued to support touch and stylus input, and has had tabletPCs available, was prepared for more touch devices, did well with Windows 8?

Who would have thought? Oh ya, anyone that was freaking paying attention.

Companies trying to dump their non-touch devices and not getting enough supply to even sell their touch devices didn't do well, I wonder why? These companies had almost 2 years and they could have built computers with a planned Windows 7 to Windows 8 transition because the touch API/Driver/Tech is identical for Windows 7.

Boo hoo Acer and everyone else that WAS NOT paying attention or apparently didn't give a crap.

Back to reality...

Funny, Lenovo is the only PC OEM I have seen for business's still selling PC with WIndows 7 + Windows 8 installs...

Not to mention they dumped a lot of stock at the end of last year, some good prices for them

One day Lenovo is going to be the biggest PC and tablet manufacturer, because they get it. They make awesome innovative products.

No wonder! Only Sony and Lenovo made tablets that rival Surface. Of those two only Lenovo is affordable. Surface is only available on select markets. Looks like Lenovo will be the biggest pc maker in the future because theyre able to adres changes in the market with speed.

Why is Lenovo happy and doing well? They made some damn good products for a start!

Everyone else seems dismal because they think windows is taking away their competition (Steam) or because people don't want the outdated designs provided by the other OEMs.

So far lenovo is one of the only OEM's who has fully embraced the new design of W8 and actually produced quality products to match. HP and Dell, although they have some nice products are still pushing the old Win7 design but with a gimmicky touch screen added to magically make it better and fun to use like Win8.

Auzeras said,
Why is Lenovo happy and doing well? They made some damn good products for a start!

Everyone else seems dismal because they think windows is taking away their competition (Steam) or because people don't want the outdated designs provided by the other OEMs.

So far lenovo is one of the only OEM's who has fully embraced the new design of W8 and actually produced quality products to match. HP and Dell, although they have some nice products are still pushing the old Win7 design but with a gimmicky touch screen added to magically make it better and fun to use like Win8.


The only W7-era desktop form factor that can translate well to W8 is the all-in-one. The classic tower design with an off-the-shelf monitor just isn't going to cut it without extensive customization (read: bad consumer experience). Customization is the magic word for enthusiasts, but letting paradigms revolve around such a niche is damaging to the evolution of personal computing. The microcomputer was pushed because it made computing easy. That it's now being held back by fans who want to keep it complicated is ironic.

I'd like to see OEMs come up with some more experimental form factors. I'd like to see an OEM put real marketing power behind multi-display setups, for example, and not necessarily just the sleepy standard side-by-side style.

I'd like to see OEMs take risks and try to create game-changers, rather than just use the phrase in every other marketing campaign.

AnotherITguy said,
about time someone actually spoke with hard facts about windows 8, this vista like hate is ridiculous!

Yes because everything anyone else says in the countless number of articles that show windows 8 doing poorly (and proving it) are 100% WRONG!!

Order_66 said,

Yes because everything anyone else says in the countless number of articles that show windows 8 doing poorly (and proving it) are 100% WRONG!!

Hey AnotherITguy - see the way it works is that Order_66 is a manager at a electronics chain store. He says that only Apple computers are selling they are flying out the door, while Win8 computers are stacking up because corporate keeps sending them more and they sell none. Apple can report a decline in Mac sales, but they are wrong because Order_66 says they are selling more and more Macs. Meanwhile, Lenovo, Microsoft, and others are reporting increases in profits in since Win8 was released, but they are clearly lying because Order_66 says that his one store is not selling any Win8 computers.

So it is not what the actual numbers tell us is happening, we are not supposed to use financial reports from companies like Lenovo, Microsoft, or Apple. We are not supposed to believe Tim Cook when he says that their Mac sales are decreasing. We are not supposed to listen to Microsoft when they report a 24% increase in profits from their Windows division. We are not supposed to listen to Lenovo's reports. We are not supposed to listen to companies like HP who said that sales were increasing.

No, no, we are supposed to listen to some guy who is a manager at an electronics store (although, I think he is more on the level of McD's French Fry cook manager), because he knows from his one store how global markets are trending - even though he can't order enough Sno Caps to keep the checkout isle stocked properly.

Auzeras said,
Why is Lenovo happy and doing well? They made some damn good products for a start!

Everyone else seems dismal because they think windows is taking away their competition (Steam) or because people don't want the outdated designs provided by the other OEMs.

So far lenovo is one of the only OEM's who has fully embraced the new design of W8 and actually produced quality products to match. HP and Dell, although they have some nice products are still pushing the old Win7 design but with a gimmicky touch screen added to magically make it better and fun to use like Win8.

The sad thing is there should have NEVER been any perceived difference between Windows 7 and Windows 8, and preparing for Windows 8's release.

Sure Sinofsky screwed Windows 7 being launched as 'touch' OS, but it was. However, the technology for 50 points of touch and input technology meant that OEMs could have been shipping PCs over the last year that were touch enabled and easily transition to Windows 8.

A lot of companies only had a tepid release of touch screen devices. Even in non-tablet form, people are holding out for notebooks with Touch enabled screens. With companies only offering a couple of 'touch' models and trying to be successful with a limited availability, were screwing themselves.

Sadly a lot of 'good' companies did this, not just ones that like to publically cry about it *Acer*.

Order_66 said,

Yes because everything anyone else says in the countless number of articles that show windows 8 doing poorly (and proving it) are 100% WRONG!!

oh so I guess its Lenovos fault the other oems can't build a pc anyone wants to buy. But lenovo can and they actually went up ins sales? It shoes rightbthere tho who embrace Windows 8 properly will do well and those who dont suffer...same with Android and Windows Phones. You are just a hater. Please go back in dark.

nohone said,

Hey AnotherITguy - see the way it works is that Order_66 is a manager at a electronics chain store. He says that only Apple computers are selling they are flying out the door, while Win8 computers are stacking up because corporate keeps sending them more and they sell none. Apple can report a decline in Mac sales, but they are wrong because Order_66 says they are selling more and more Macs. Meanwhile, Lenovo, Microsoft, and others are reporting increases in profits in since Win8 was released, but they are clearly lying because Order_66 says that his one store is not selling any Win8 computers.

So it is not what the actual numbers tell us is happening, we are not supposed to use financial reports from companies like Lenovo, Microsoft, or Apple. We are not supposed to believe Tim Cook when he says that their Mac sales are decreasing. We are not supposed to listen to Microsoft when they report a 24% increase in profits from their Windows division. We are not supposed to listen to Lenovo's reports. We are not supposed to listen to companies like HP who said that sales were increasing.

No, no, we are supposed to listen to some guy who is a manager at an electronics store (although, I think he is more on the level of McD's French Fry cook manager), because he knows from his one store how global markets are trending - even though he can't order enough Sno Caps to keep the checkout isle stocked properly.

+1, 000, 000

Order_66 said
Yes because everything anyone else says in the countless number of articles that show windows 8 doing poorly (and proving it) are 100% WRONG!!
Just because a large group of people say so, doesn't mean they're always right. And it's not selling fast right now because it's a radical change from Windows 7 as far as the UI is concerned.

Windows 8 offers many improvements and new features and a UI that organizes your files easier and has a way better style and looks helluva lot more modern than a crummy 17 year-old Start Menu that wasn't getting any better in the past couple years.

Edited by dtourond, Jan 31 2013, 2:55am :

nohone said
Hey AnotherITguy - see the way it works is that Order_66 is a manager at a electronics chain store. He says that only Apple computers are selling they are flying out the door, while Win8 computers are stacking up because corporate keeps sending them more and they sell none. Apple can report a decline in Mac sales, but they are wrong because Order_66 says they are selling more and more Macs. Meanwhile, Lenovo, Microsoft, and others are reporting increases in profits in since Win8 was released, but they are clearly lying because Order_66 says that his one store is not selling any Win8 computers.

So it is not what the actual numbers tell us is happening, we are not supposed to use financial reports from companies like Lenovo, Microsoft, or Apple. We are not supposed to believe Tim Cook when he says that their Mac sales are decreasing. We are not supposed to listen to Microsoft when they report a 24% increase in profits from their Windows division. We are not supposed to listen to Lenovo's reports. We are not supposed to listen to companies like HP who said that sales were increasing.

No, no, we are supposed to listen to some guy who is a manager at an electronics store (although, I think he is more on the level of McD's French Fry cook manager), because he knows from his one store how global markets are trending - even though he can't order enough Sno Caps to keep the checkout isle stocked properly.

The greatest comment I've seen on here yet

TechieXP said,
oh so I guess its Lenovos fault the other oems can't build a pc anyone wants to buy. But lenovo can and they actually went up ins sales? It shoes rightbthere tho who embrace Windows 8 properly will do well and those who dont suffer...same with Android and Windows Phones. You are just a hater. Please go back in dark.

Perhaps you are correct as it seems lenovo is the only manufacturer that understands the obvious shortcomings of "metro" and has offered a solution.

http://support.lenovo.com/en_U...DocID=DS032411&rss=true

nekrosoft13 said,

thats a last thing most people want.


You, my friend, are a great example of a self-styled tech enthusiast suffering total disconnect from reality.

You probably don't even realize laptops outsell desktops of any form factor.

AnotherITguy said,
about time someone actually spoke with hard facts about windows 8, this vista like hate is ridiculous!

If these facts are so irrefutable and rock-solid, why do they summarize things with these words (my emphasis) "It also shows that the launch of Windows 8 was PERHAPS NOT AS slow as certain companies, such as Acer, would lead people to believe."? Does not sound as iron-clad as you might like. But keep the faith, though....

nekrosoft13 said,

thats a last thing most people want.

I don't know. If it came in the form of the current iMacs, and at those prices but with user upgradeable Memory, CPU, Video, and HD, I think Windows 8 would do quite well on them, and see decently.

The last iMac I owned looked better than any PC I've had and ran Windows 7 very fast natively. I couldn't live with not being able to upgrade my video and CPU.

MorganX said,

I don't know. If it came in the form of the current iMacs, and at those prices but with user upgradeable Memory, CPU, Video, and HD, I think Windows 8 would do quite well on them, and see decently.

The last iMac I owned looked better than any PC I've had and ran Windows 7 very fast natively. I couldn't live with not being able to upgrade my video and CPU.


The segment of the market interested in upgrading their CPU is small and shrinking. There's no real demand for upgradability beyond what laptops are capable of (memory and storage). For everything else, value is too much of a factor. Why waste time and energy disassembling and reassembling when you can just buy a new system for a slightly higher cost?

For the people willing to perform such extensive upgrades, I'll say what I always say: they do NOT drive the market, they do NOT influence public opinion, and they are NOT being marketed to in the wider consumer space.

We'll have to disagree on that. I'm not sure how extensive it is, though a CPU upgrade "might" be considered extensive. I do know that's why a lot of people, myself included, don't buy all in ones. Limited upgradeability. People are more "aware" than you think.

Enthusiasts still drive the market IMO. Or there would be no big rigs anymore, no high end GPU development, no DirectX evolution (or much slower). Even gaming console owners understand resolution, CPU, and storage.

Upgradeability is what makes the Wintel platform what it is. I have no doubt upgrades are cutting in to new sales.

People who don't know such things are asking people who do. I've been asked to go shopping more than I ever have in my career. Those who know, most likely won't buy. And the majority, simply aren't interested in a PC. They want a better smartphone or a tablet.

MorganX said,
We'll have to disagree on that. I'm not sure how extensive it is, though a CPU upgrade "might" be considered extensive. I do know that's why a lot of people, myself included, don't buy all in ones. Limited upgradeability. People are more "aware" than you think.

Enthusiasts still drive the market IMO. Or there would be no big rigs anymore, no high end GPU development, no DirectX evolution (or much slower). Even gaming console owners understand resolution, CPU, and storage.

Upgradeability is what makes the Wintel platform what it is. I have no doubt upgrades are cutting in to new sales.

People who don't know such things are asking people who do. I've been asked to go shopping more than I ever have in my career. Those who know, most likely won't buy. And the majority, simply aren't interested in a PC. They want a better smartphone or a tablet.


It's a simple question of value. There are bound to be statistics out there somewhere on this, though they seem incredibly difficult to search for, now that I look for them. It isn't a topic two people can 'disagree' on, because there's only going to be one truth.

From what I see, upgradable PCs are not a growth market. What markets have exploded? Portable computing and devices that are 'all in one' (laptops, smartphones, tablets, etc). It's growth that 'drives' markets, and componentized PCs are left out.

Look at the components themselves. CPUs are marketed like cars, with performance tiers (i3, i5, i7) instead of the low level stats we got back when we cared about megahertz. We aren't encouraging or demanding users to be tech savvy anymore. We certainly aren't teaching them HOW to upgrade computers--if they do it at all, they're more likely to ask Best Buy to install it for them.

This is bubble culture. Tech enthusiasts interact with other enthusiasts, hang out on enthusiast web sites, and expose themselves to enthusiast communities. They've cut themselves off from paying attention to the reality that PCs are not enthusiast devices anymore. An overwhelming majority of PCs are used by people who don't know what a partition is, who don't know the difference between different PCI slot types, who couldn't tell you why a Windows application won't run on a Mac, who've never heard of Linux or open source.

These people aren't outliers. They're a driving force of the consumer PC market, and you know what? Engineers are happy to work for them. Architects encourage them. Computer design has, for decades, been all about working toward tools without learning curves. The people building and advancing technologies don't WANT people to have to upgrade their computers. They don't WANT them to have to know nitty gritty details, and it's these goals that fuel the evolution of user experience.

People who want computers to be things people can build and unbuild are not the dreamers. They aren't the people with a vision for the future of technology. They're just tinkerers who want a fancy set of legos to play with.

You are correct about finding the data Growth you're probably correct. Profitable and steady, yes. I haven't been into big rigs for years but Microcenter and such places are thriving. Newegg.com is doing quite well.

Tech Enthusiasts do all the things you say, they also live next door to Soccer Moms who need tech advice. Or they are their sons (and daughters).

Again, I disagree. Kids grow up with console UIs now. They go toe to toe over the specs of PS3 vs. Xbox. They don't know PCI slots, or USB 2 vs. 3 or that USB is going to 10GB. They just know 3 is way fast now.

Where we agree, is that most consumers don't want a PC at all, they just want a tablet or smartphone. But even there they are comparing specs now. Teenagers discussing cores of their cheap Androids, etc.

And this is why MS took the risk of alienating it's core OS users. For some time the "growth" has been moving toward mobile devices thanks in large part to iPad. The 67 year-old desk lady at the Gold's Gym I go to got a Nexus for Christmas and can't wait to start using it.

We aren't moving towards mobile devices because that was someone's great vision, it's because Apple realized that not only would people tire of their luxury tax, but technology is now at a point where even enthusiasts, don't "need" to upgrade as often or at all. Additionally, you're not going to sell most consumers a computer period.

The Desktop Environment will be around for a while, even in the Modern UI, either downloadable or in some Modernized format. Everyone else, won't care.

But as long as it is a PC, upgradeability will matter. That's actually the new business model. There will always be a reason to upgrade. However, it is diminishing due to the power of today's technology and the growing power of consoles.

Even ignorant people learn when they pay for the same thing enough times. And when they have advice next door.

>>if they do it at all, they're more likely to ask Best Buy to install it for them.<<

Absolutely. Tech Gurus, Geek Squad, etc. etc. The market is alive and well, it's not where the biggest growth potential is, but it is stable and lucrative and not going away soon. That's why Microsoft is confused and their product line has a dual identity, that at the moments, is as detrimental as it is forward looking. I expect more polish and clarity in Windows Blue/9.