After recording its biggest quarterly revenue increase since 2015, Lenovo has wasted no time in reinvesting. Buying up a controlling 51 per cent share in Fujitsu’s PC business, Lenovo is reasserting itself in the market place.
Earlier this year, HP overtook Lenovo as the biggest PC maker in the world, due to strong figures in North America. However, with Lenovo acquiring over half of Fujitsu’s PC unit, HP’s time on top could be short lived.
In total Lenovo has splashed some $157 million in cash for its 51 per cent share. It will add between $22 million and $112 million based on performance until 2020 on top of that. According to Bloomberg, Lenovo Chief Executive Yang Yuanqing is taking costs out of the company’s mobile business.
Lenovo’s PC sales has grown by 17 per cent in the past quarter and is sure to be boosted further after this acquisition. That contributed to China’s largest PC maker reporting a 5 per cent jump in revenue to $11.8 billion in the quarter ended September, beating projections for $11.3 billion and marking the biggest rise since the same period of 2015.
“A healthier PC market may finally aid Lenovo’s platform almost as much as it has HP or Dell,” Anand Srinivasan and Wei Mok, analysts at Bloomberg Intelligence, said. “The server and mobile platforms need structural fixes.”