Lenovo, the fourth largest PC maker in the world, surprised most investors by posting a $60 million net against a loss of $116 million in the quarter a year ago. The company said worldwide shipments grew 17% in the Q, well ahead of the growth rate for the industry.

Lenovo has the largest market share of PCs in it home market of China. Due to the rapid growth there, a number of other PC companies, particularly Dell (DELL) are entering the country with low-price PCs.

Hewlett-Packard (HPQ) have both posted solid results for PC sales and unit growth, which may be a signal that Dell will benefit from a rebounding marketplace.

Douglas A. McIntyre