Lenovo to Transform from Devices to Solutions Company
Lenovo unveiled its plans to drive transformation from a global devices company to a technology leader in global devices + solutions, services, and software. Lenovo CEO Yang Yuanqing and other executive leaders outlined the company’s strategy, structure, and goals that will fuel Lenovo’s next decade of growth and position it as one of the world’s most trusted and iconic technology leaders, delivering smarter technology for all.
“Last year at this time, none of us knew how things would turn out for Lenovo,” said Lenovo CEO Yuanqing Yang. “But we did know this: we would support each other in an unpredictable journey ahead; we would fight for the best possible outcome in an uncertain world; and we would use our technology to connect and heal a wounded society.”
Lenovo’s operational and workforce resilience has led to significant growth across all areas of the business, the doubling of the company’s share price year over year, and has positioned it for its fourth transformation during its 35 year history into a broader technology leader that combines devices + services + software + solutions. “Our share price has doubled,” Yang said. “This not only shows our outstanding execution, but also that the market views Lenovo as a resilient, winning company. We were a strong team before the pandemic, and an even stronger team after.”
For the first three quarters of FY2020, revenue grew 12% and pre-tax profit increased 48% year over year while Lenovo remains number one globally in PC and tablet market share, hitting historic highs. At the same time, mobile achieved double-digit revenue growth year-over-year in FYQ3, while revenue in the data center business grew by double digits year-over-year, significantly outperforming the market for four consecutive quarters. Services, software, and solutions grew almost 38% year-over-year in FYQ3, now accounting for ~8% of the company’s total revenue.