Lenovo PC Sales Soar 46 Percent, Annual Revenue Hits $60B

Fueled by the shift to remote working and learning, Lenovo hit a new revenue high of $60.7 billion in its fiscal year that ended March 31, led by soaring PC sales.

Lenovo delivered record-breaking fiscal fourth quarter results with total revenue skyrocketing 48 percent to $15.6 billion led by significant growth in Lenovo’s PC business.

Fueled by the surge in remote working and learning stemming from the global COVID-19 pandemic, Lenovo’s annual revenue now stands at an all-time high of $60.7 billion.

“Last quarter, we delivered our fastest growing quarter in almost a decade and closed the fiscal year with the new milestone of passing $60 billion in revenue and significant growth in profit to a new record,” sad Lenovo Chairman and CEO Yuanqing Yang in a statement. “These historic highs were achieved by leveraging our core competencies of a clear strategy, innovative products, operational excellence, and global-local model to meet the new needs in the New Normal.”

This “new normal” of remote working and learning led Lenovo’s PC and Smart Devices sales to hit a record $12.4 billion, up 46 percent year over year, while profitability reached an all-time of 6.7 percent. Tablets shipments grew 157 percent year over year, around three times as fast as the market.

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In terms of Lenovo’s Data Center Group, which includes servers, storage and hyperconverged infrastructure, revenues in the fourth quarter grew 32 percent year over year to $1.6 billion. Profitability for its data center infrastructure business improved 4.4 points year over year.

Lenovo said it achieved a record fourth quarter in terms of server, storage, software-defined infrastructure, high-performance computing (HPC) and artificial intelligence (AI) revenue. In particular, Lenovo’s storage revenue grew 73 percent year over year, although the company did not disclose a sales figure.

Lenovo is also becoming a larger infrastructure supplier for cloud service providers including Amazon Web Services (AWS), Microsoft and Google. Lenovo sales to cloud service providers jumped 73 percent in its fourth quarter year over year, although the company did not provide a sales figure.

In Lenovo’s fiscal year 2021/2020, which ended March 31, 2021, the Hong Kong-based company generated a record breaking $60.7 billion in total sales, representing an annual increase of 20 percent or more than $10 billion annually.

“Looking forward, we will capture the huge growth opportunities created by the market trends of information consumption upgrade, infrastructure upgrade and application upgrade to drive long-term sustainable growth and ensure we can build an even smarter future in the years ahead,” said CEO Yuanqing.

Lenovo is currently undertaking an internal group restructuring with the creation of a new Solutions & Sales Group that brings together the company’s services and solutions teams as well as other capabilities cross the organization. Additionally, Lenovo recently split its sales organization structure into two groups: China CEO and an International Sales Organization. Lenovo is also rebranding its Data Center Group into the new Infrastructure Solutions Group.