Lenovo Group has revealed that its PC sales volume for the first quarter of 2019 outperformed market growth by 13% year-on-year, taking it to an all-time record PC market share globally of 24.9%. This means one in every four PCs built in the world is a Lenovo PC.
The company announced group revenue in the first quarter reached US$12.5 billion, the eighth consecutive quarter of growth. Pre-tax income more than doubled year-on-year, growing by US$127 million to reach US$240 million. Net income also more than doubled, up US$85 million to US$162 million.
Basic earnings per share for the first quarter were 1.37 US cents or 10.74 HK cents.
“This quarter’s strong results provided solid evidence that Lenovo’s Intelligent Transformation is enabling the company to drive sustainable, profitable growth in today’s dynamic and changing world,” said Yang Yuanqing, Lenovo Chairman and CEO. “Our persistent execution and operational efficiency allows us to bring our vision to life and deliver smarter technology for all.”
The first-quarter results signal that Lenovo continues to thrive – outperforming the market and leading the global tech sector in spite of industry-wide geopolitical and trade uncertainties.
The strong results are led by the Intelligent Devices Group (IDG). The PC and Smart Devices Group (PCSD), one of its two business units, continued double-digit (12%) revenue growth while achieving its highest-ever profit in a fiscal first quarter, and further improving industry-leading profitability. Pre-tax income was US$524 million, up US$98 million. Americas and Asia Pacific achieved 20% and 40% year-on-year revenue growth respectively and all four geographies (Americas, Asia Pacific, China, EMEA) each delivered over US$2 billion in revenue, demonstrating the geographical balance and sustainability of this business.
In PCs, volume outgrew the market, which as a whole is experiencing a recovery, by over 13 points, and the group hit an all-time record PC market share of 24.9%. This means one in every four PCs built in the world is a Lenovo PC – cementing Lenovo’s position as the worldwide number one in PCs.
These strong results, says the company, are driven by innovation, a customer-centric product portfolio and continuing focus on operational excellence. This strategy enables the company to outgrow the market significantly across high-growth and premium categories including Workstation, Thin and Light, Visuals, Gaming PCs and Chromebook. Looking forward, the PC and Smart Device group will continue to drive premium-to-market growth and industry-leading profitability by focusing on premium segments as well as innovating in Smart IoT, commercial Smart IoT and developing new devices for homes and offices.
IDG’s second business unit, the Mobile Business Group (MBG), delivered another profitable quarter and improved pre-tax income by US$100 million for the 4th consecutive quarter. In the North America market, volume outgrew the market by more than 37 points and pre-tax income margin improved by over 14 points year-on-year. In the company’s Latin America stronghold, volume has grown with or above the market for 11 quarters.
The Data Center Group (DCG) continued to improve profitability year-on-year for the eighth consecutive quarter. Storage revenue grew more than 80% year-on-year and Software Defined Infrastructure (SDI) continued to grow at a double-digit rate year-on-year. Overall revenue declined due to a small number of large cloud customers reducing their purchasing after rapid infrastructure growth over the past year and a lower average unit revenue due to declining component prices. In High Performance Computing the company extended the Number 1 position in the Top 500 Supercomputer list to 173 systems across 20 markets – continuing to support ground-breaking scientific research and applications around the world.
The company says it will continue to expand as a full stack Data Center player, driving SDI, storage, networking, HPC, AI, IoT, service and solution led sales while strengthening in-house design and manufacturing capability for Hyperscale.
SA’s Internet goes down again
South Africa is about to experience a small repeat of the lower speeds and loss of Internet connectivity suffered in January, thanks to a new undersea cable break, writes BRYAN TURNER
Internet service provider Afrihost has notified customers that there are major outages across all South African Internet Service Providers (ISPs), as a result of a break in the WACS undersea cable between Portugal and England
The cause of the cable break along the cable is unclear. it marks the second major breakage event along the West African Internet sea cables this year, and comes at the worst possible time: as South Africans grow heavily dependent on their Internet connections during the COVID-19 lockdown.
As a result of the break, the use of international websites and services, which include VPNs (virtual private networks), may result in latency – decreased speeds and response times.
WACS runs from Yzerfontein in the Western Cape, up the West Coast of Africa, and terminates in the United Kingdom. It makes a stop in Portugal before it reaches the UK, and the breakage is reportedly somewhere between these two countries.
The cable is owned in portions by several companies, and the portion where the breakage has occurred belongs to Tata Communications.
The alternate routes are:
- SAT3, which runs from Melkbosstrand also in the Western Cape, up the West Coast and terminates in Portugal and Spain. This cable runs nearly parallel to WACS and has less Internet capacity than WACS.
- ACE (Africa Coast to Europe), which also runs up the West Coast.
- The SEACOM cable runs from South Africa, up the East Coast of Africa, terminating in both London and Dubai.
- The EASSy cable also runs from South Africa, up the East Coast, terminating in Sudan, from where it connects to other cables.
The routes most ISPs in South Africa use are WACS and SAT3, due to cost reasons.
The impact will not be as severe as in January, though. All international traffic is being redirected via alternative cable routes. This may be a viable method for connecting users to the Internet but might not be suitable for latency-sensitive applications like International video conferencing.
SA cellphones to be tracked to fight coronavirus
Several countries are tracking cellphones to understand who may have been exposed to coronavirus-infected people. South Africa is about to follow suit, writes BRYAN TURNER
From Israel to South Korea, governments and cell networks have been implementing measures to trace the cellphones of coronavirus-infected citizens, and who they’ve been around. The mechanisms countries have used have varied.
In Iran, citizens were encouraged to download an app that claimed to diagnose COVID-19 with a series of yes or no questions. The app also tracked real-time location with a very high level of accuracy, provided by the GPS sensor.
In Germany, all cellphones on Deutsche Telekom are being tracked through cell tower connections, providing a much coarser location, but a less invasive method of tracking. The data is being handled by the Robert Koch Institute, the German version of the US Centers for Disease Control and Prevention.
In Taiwan, those quarantined at home are tracked via an “electronic fence”, which determines if users leave their homes.
In South Africa, preparations have started to track cellphones based on cell tower connections. The choice of this method is understandable, as many South Africans may either feel an app is too intrusive to have installed, or may not have the data to install the app. This method also allows more cellphones, including basic feature phones, to be tracked.
This means that users can be tracked on a fairly anonymised basis, because these locations can be accurate to about 2 square kilometers. Clearly, this method of tracking is not meant to monitor individual movements, but rather gain a sense of who’s been around which general area.
This data could be used to find lockdown violators, if one considers that a phone connecting in Hillbrow for the first 11 days of lockdown, and then connecting in Morningside for the next 5, likely indicates a person has moved for an extended period of time.
Communications minister Stella Ndabeni-Abrahams said that South African network providers have agreed to provide government with location data to help fight COVID-19.
Details on how the data will be used, and what it will used to determine, are still unclear.