Lenovo 2013 Annual Report Download - page 11

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2012/13 Annual Report Lenovo Group Limited 9
• We reached an all-time record for profitability, surpassing
$800 million for the fiscal year. Not only was our
commercial PC business profitable, but most of our
regions delivered profitable PC growth throughout the
year.
• We announced the construction of a manufacturing
line in the U.S. to build Think branded PC products,
becoming the first PC company to build its own
products in the U.S. in more than a decade and leading
other players to follow in our footsteps and expand
manufacturing in the U.S. as well.
• We proved our ability to not only be a market share
leader, but also an innovation leader, delivering a record
53 awards at the Consumer Electronics Show – the
world’s largest and most prestigious technology trade
event. This success also helped drive our brand to new
heights. For the first time, Lenovo was listed among the
world’s most powerful brands by Fortune magazine.
PROGRESS IN OUR PC+ EVOLUTION
Even more, as the market has changed, Lenovo has also
transformed itself for the PC+ era. Already, we are number
3 worldwide in PC+, which includes PCs, smartphones and
tablets. We will continue to invest for growth in PC+, but we
have already made great early progress. Key achievements
include:
• Overall, our Mobile Internet Digital Home (MIDH) Group
continued its rapid growth, and now accounts for 9% of
our overall revenue only 2 years after being started.
• Smartphone sales surged in China, as Lenovo became
number 2 in the world’s biggest smartphone market.
• On the strength of China and successful launches in new
markets like India, the Philippines, Vietnam, Indonesia
and Russia, Lenovo continue to build momentum as a
global smartphone leader.
• Our global tablet sales rose by 74%. Tablets are a
significant growth driver in our industry, and we have
established a strong foundation to build on in the next
year.
• Lenovo completed several key M&A activities: CCE
in Brazil, for consumer technology products; EMC in
the U.S. in servers and storage; and Stoneware in the
U.S. in cloud computing. Each of these successful
transactions will help position us for continued growth in
the PC+ market.
• We continued to drive our unique hybrid manufacturing
strategy and invest in vertical integration – especially
with new facilities in Brazil and our new mobile device-
focused plant in Wuhan, China. These investments will
help us drive not only efficiency, but also outstanding
product development across the PC+ spectrum of
products.
FOUNDATION OF OUR SUCCESS
Our strong performance, in both our core PC business
and our fast growing PC+ businesses, was driven by the
following key factors:
• A clear strategy that balances delivering strong
short-term results with reaching long-term
objectives: We continued to protect our core markets in
China and global commercial PC sales, while attacking
to gain share in emerging markets, consumer sales
and mobile internet device sales. For the first time, our
attack businesses – like mobile, consumer and emerging
markets – delivered about half of our total revenue and
these businesses also delivered improved profitability in
almost every segment. This clear strategy drove strong
execution worldwide.