Lenovo Group announced its first quarter results for the period ended June 30, 2008 on August 7. The data shows that the Group's Q1 sales increased by 10% year-on-year to US$4.2 billion, profit rose by 65% to US$110 million, and gross margin reached 14.1%.
The data also shows that Lenovo's global PC sales volume grew by 14.6% in the first quarter, which was in line with the market average growth. In Greater China, Lenovo's PC sales volume increased by 17%, driving a 22% increase in Q1 consolidated sales to US$1.7 billion. Despite being affected by natural disasters such as the Sichuan earthquake and floods, Lenovo continued to maintain its leading position in the Greater China market, capturing a 27.9% market share. During the quarter, Greater China operations accounted for 41% of the Group's total sales.
Lenovo's consolidated sales in the Americas region amounted to US$1.1 billion, accounting for 26% of the Group's total sales; in Europe, the Middle East, and Africa, PC sales volume increased by 26% year-on-year, with consolidated sales reaching US$904 million, accounting for 21% of the Group's total sales; in the Asia-Pacific region (excluding Greater China), PC sales volume rose by 11%, with consolidated sales amounting to US$497 million, accounting for 12% of the Group's total sales.
The notebook business continued to be the largest source of Lenovo Group's total sales. The data shows that Lenovo's notebook sales volume increased by 33% year-on-year in Q1, with consolidated sales increasing by 17% to US$2.4 billion, accounting for 57% of the quarterly total sales. Desktop computer sales volume increased slightly by 3% year-on-year, with quarterly consolidated sales rising by 3% to US$1.7 billion, accounting for 41% of the total sales.