Lenovo profit up 36 percent as mobile grows

Nov 07, 2013 by Joe Mcdonald

Lenovo Group, the biggest personal computer maker, said Thursday its latest quarterly profit rose 36 percent as sales of smartphones and tablet computers more than doubled.

Lenovo earned $220 million, or $2.12 per share, in the three months ending Sept. 30, the company announced. Revenue rose 13 percent from a year earlier to $9.8 billion.

The results reflect the dramatic shift underway as people switch to going online wirelessly and manufacturers that got the bulk of revenues from desktop PCs scramble to keep up.

Lenovo said its sales of smartphones, and other rose 106 percent over a year earlier to $1.5 billion. Mobile's share of revenue expanded to 15 percent from the previous quarter's 9 percent.

Sales of traditional desktop PCs fell 3 percent to $2.7 billion while laptop sales rose 8 percent to $5 billion.

"'We are optimistic about the industry's outlook," said chairman Yang Yuanqing in an earnings announcement.

"The PC market is recovering and tablet growth continues shifting to mainstream and entry-level segments, as well as emerging markets. These are Lenovo's strength areas," said Yang. "We are confident that we will capture these opportunities and continue our strong growth."

Lenovo, which is based in Beijing and in Research Triangle Park, North Carolina, has said it expects mobile devices to become the bulk of its business in coming years.

In its home China market, Lenovo's revenue rose just 1 percent to $3.8 billion, reflecting a steady decline in economic growth. It said smartphone and tablet sales in China rose 45 percent.

Lenovo was declared the No. 1 in the previous quarter by research firms Gartner and IDC, finally surpassing rival Hewlett Packard Co. But that success was tempered by data that show sales of steadily declining.

Explore further: 33 years after creating the PC, IBM leaves it behind in favour of the cloud

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Lenovo mobile sales drive profit growth (Update)

Aug 15, 2013

Lenovo Group says it is evolving quickly into a supplier of wireless computing, driven by booming sales of smartphones and tablets as consumers shift away from desktop computers.

PC maker Lenovo says profit up 25 percent

Feb 17, 2011

(AP) -- Chinese personal computer maker Lenovo said Thursday its quarterly profit rose 25 percent on double-digit sales growth in developing markets.

PC maker Lenovo's quarterly profit up 45 percent

Nov 10, 2010

(AP) -- Lenovo Group, the world's fourth-largest personal computer maker, said Wednesday its latest quarterly profit rose 45 percent on strong sales in China and other emerging markets.

Recommended for you

Apple's freshly sliced shares climb

4 hours ago

Freshly split Apple shares closed at a high on Tuesday, with investors evidently betting the California company will debut popular new gadgets, perhaps a smart watch and an iPhone 6.

User comments : 0