Brazil: Brazilian branch of China’s Lenovo grows 75 pct in its third financial quarter

27 March 2008

Sao Paulo, Brazil, 27 March – The Brazilian subsidiary of China’s Lenovo posted 75 percent growth in its third financial quarter ended in December 2007, it chairman, Marcelo Medeiros said Tuesday in Sao Paulo.

According to consultancy IDC, in the same period the national average growth for the sector in Brazil was 16 percent.

According to Medeiros, one of the main factors contributing to the above-average result was the partnership signed last year with Spanish company Telefonica.

The agreement outlined the supply of computers for Telefonica’s “Posto Informático” (IT Point) project, which has already needed 45,000 of Lenovo’s personal computers, as well as training for the operator’s sales teams and representatives.

Between October and December, the United States, Canada and Latin America accounted for 25 percent of Lenovo’s total turnover, contributing US$1.2 billion.

Across the glove, the company’s sales rose 15 percent in the quarter, to US$4.6 billion.

In the Americas, Lenovo has said the result was due to the continuity of its transformation into a trans-national company, as well as greater sales to small and medium-sized enterprises (SMEs).

“This year will be key for Lenovo, as 2008 will be the first year without the IBM brand in our products, due to the launch of the new line of products for end users, Idea, and the sponsorship of the Beijing Olympic Games,” Medeiros said.

In 2004 Lenovo acquired the Personal Computing division of IBM, thus taking the US company’s products and brands to the consumer and business markets. (macauhub)