Top PC maker Lenovo posts 29% jump in annual profits (Update)

May 21, 2014
Customers check out the computers at a Lenovo shop in Hangzhou, Zhejiang province, on February 2, 2014

Chinese computer maker Lenovo Group on Wednesday announced a jump in full-year net profits of 29 percent, driven by record sales of smartphones.

Net profit for the financial year ending March 31 rose to $817.23 million, up 28.7 percent year-on-year.

Revenues were up 14.3 percent to $38.71 billion, the company said in a filing to the Hong Kong Stock Exchange.

"Fiscal year 2013/14 was another record year for Lenovo," Yang Yuanqing, the company's chairman and chief executive officer, said in the filing.

"The record sales and profits that we delivered last year prove that Lenovo can grow and deliver its commitments, no matter the market conditions," he added in a press statement.

The Hong Kong-listed firm is the world's leader in the PC market, with a 17.7 percent global market share, but has plans to shift away from its traditional focus as consumers buy more tablets and smartphones.

Yang said in February that the company aims to become the third largest player in the global smartphone market following the acquisition of US telecom firm Motorola Mobility, which Google agreed to sell for $2.91 billion in January. The sale has yet to be completed.

Lenovo said in the filing it has sold a "record-high" level of smartphone devices last year, totalling more than 50 million units—a 72 percent rise year-on-year.

A staff member checks a Lenovo mobile phone display prior to a launching ceremony in Beijing, on September 16, 2009

China contributed 38 percent of the group's total revenue, while the market for the Americas made up 21 percent.

Europe, the Middle East and Africa, contributing 25 percent, recorded a 24 percent boost in PC shipments compared to last year.

Aside from the Motorola acquisition, Lenovo also snapped up IBM's low-end server business for $2.3 billion in January.

The company has defended the acquisitions and said it has enough funding for the purchases, with both transactions pending regulatory approval.

Explore further: China's Lenovo aims for third in global smartphone market

add to favorites email to friend print save as pdf

Related Stories

Lenovo profit up 36 percent as mobile grows

Nov 07, 2013

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 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.

Recommended for you

What's PayPal's first solo move?

10 hours ago

PayPal's impending split from long-time partner eBay Inc. will ratchet up its appeal to online retail competitors such as Amazon.com and give it the freedom to aggressively take on new mobile pay challeng ...

AOL to feed more video, news to Microsoft's MSN

15 hours ago

AOL will provide Microsoft's MSN with more video and additional news stories from popular sites such as The Huffington Post and TechCrunch in an expansion of a deal aimed at selling more digital advertising.

Microsoft to tap $2-trillion Indian cloud market

19 hours ago

Microsoft announced plans Tuesday to offer its commercial cloud services from Indian data centres as it seeks to tap what it calls a $2-trillion market in the country where Internet use is growing rapidly.

User comments : 0