Microsoft (MSFT) Up as PC Partner Reports Strong Quarter

Microsoft (Nasdaq: MSFT) stock is up Thursday following strong Q3 results from consumer electronics giant Lenovo.

Lenovo reported a 15 percent increase in revenue to $10.8 billion and 30 percent increase in earnings to $265 million. About 32.6 million devices were shipped in the recent quarter, the company said.

Notably, Lenovo said its Desktop PC shipments grew 9.1 percent worldwide year-over-year during the third fiscal quarter, compared to an overall industry decrease of about 3 percent. As a result, Lenovo gained 2 share points year-over-year and achieved a market share of 18 percent. Consolidated sales of Lenovo desktop PCs in the third quarter increased by 12 percent year-over-year to US$ 3.2 billion, or 29 percent of the Company’s total revenue. During the quarter, Lenovo announced four new all-in-one desktop PCs, extending the Company’s lead in that competitive product category. Featured was the super-widescreen Lenovo B750, with its 29” display. According to IDC, Lenovo is number one in the worldwide AIO market, across both the consumer and commercial segments.

While it wasn't made clear the portion of PCs shipped with Microsoft Windows 7 versus Windows 8, the world's largest PC maker saw growth amid broader consolidation. Strong AIO sales also bode well for the future of Windows 8.

Shares of Microsoft are up 0.7 percent.

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