Lenovo profits soared in its second quarter -

Updates to this story

It's been a good day for Lenovo, which has announced that its second-quarter year net profit rose by 44 percent from the same time last year.

The company has put this down partly to strong growth in PC shipments.

Lenovo said its net profit rose to $76.59 million from $53 million a year earlier. Revenue rose 41 percent to $5.76 billion from $4.09 billion and its second-quarter worldwide PC shipments rose 33 percent from a year earlier, outpacing the industry's 9.7 percent growth over the same period.

The company also said it expects gross margins to improve gradually as component costs fall. Within this it included factors such as falling prices in memory chips and display panels. These claims look as though the company was trying to boost morale as its second-quarter gross margin declined to 10.3 percent from 10.6 percent a year earlier.

In the laptop sector Lenovo recorded shipments up 38 percent and sales of these were up by 40 percent. It said its market share was up 1.9 points and as a result it had kept its position as the 4th largest notebook PC company.  Accumulated sales of ThinkPad were also said to surpass the 60 million
milestone.

It's desktop market also saw huge growth growth. Shipments were noted as being up by 26 percent and sales up 27 percent. Lenovo claimed that these figures made it number three in the worlds largest desktop player. Mobile shipments were up 41 percent while sales in this sector were up by 58 percent, giving the company the number position as the domestic mobile handset brand in China. It said it further strengthened China’s distribution coverage by teaming up with China Telecom, in addition to China Unicom

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"China's PC market will continue to outgrow the global PC market. We will continue to strengthen our leading position in China and keep growing our market share outside China," Chief Executive Yang Yuanqing said. "We expect corporate PC demand to continue to pick up in mature markets."

The company added that it will also launch a tablet PC called "Lepad" in China in early 2011 and will roll out the device in other markets later next year.