China's Lenovo Group, the world's biggest PC maker, posted a better-than-expected quarterly profit on Tuesday and said it is continuing to benefit from "new normal" remote working after COVID-19.
The Chinese giant said it set new records for group revenue, pre-tax income and net income, and all three key business groups delivered year-on-year growth for the first time in six quarters.
"Last quarter was what I would call a perfect quarter for Lenovo," Chairman Yang Yuanqing told Reuters in a post-results interview.
"I hope the current quarter could be even better." he said.
Lenovo reported a 53 percent jump in net profit for the quarter ended September to US$310 million, beating average analyst estimate of US$224 million, according to Refinitiv data.
Revenue increased 7 percent to US$14.5 billion.
With the pandemic forcing companies worldwide to seek work-from-home options and people preferring to stay indoors, the company expects to benefit from increased sales of PCs and tablets.
"Our gaming PCs and our thin-and-light PCs actually grow margin faster than other products," said Yang.
According to research firm Gartner, worldwide shipments of personal computers rose 3.6 percent in the July-September quarter, due to home entertainment and distance learning needs, along with the strongest growth the U.S. PC market has seen in 10 years.
Yang predicted a further 5 percent to 10 percent industry-wide increase of total addressable market for PCs next year.
Lenovo strengthened its lead in PCs with 25.7 percent of the market, ahead of HP Inc and Dell Technologies which had 21.6 percent and 15.2 percent share, respectively.
Yang said a component supply shortage, particularly for display and integrated circuit, is keeping the company from meeting 100 percent customer demand.
"The issue is not demand, it's supply. If we can fill enough supply, we can sell more products," he said.