Lenovo Group said Tuesday its quarterly profit declined 5 percent, reflecting the computer maker's acquisition of the unprofitable Motorola mobile phone business.
Motorola unveiled three smartphone models on Monday for its return to China following a two-year absence from the most populous mobile phone market.
Shares in Lenovo dropped by five percent Thursday after the Chinese technology giant posted weaker than expected revenue figures, despite a 19 percent jump in quarterly net profit.
Lenovo Group announced the completion of its acquisition of Motorola Mobility from Google Inc. on Thursday in a move aimed at making the Chinese computer maker a global smartphone brand.
Lenovo Group has received U.S. and European approval to complete its acquisition of IBM Corp.'s low-end server business and plans to use it to grow faster outside its personal computer business, Lenovo's chairman said Monday.
Lenovo Group, the world's biggest personal computer maker, said Thursday its latest quarterly profit rose 23 percent on strong growth in sales of smartphones and other mobile devices.
Nearly 300 million smartphones were shipped in the second quarter of this year, up almost 25 percent from the same period last year, according to market research firm International Data Corp.
Another wave of laptop computers running on Google's Chrome operating system will be hitting stores this summer in the latest challenge to Microsoft's dominant Windows franchise.
An expensive mistake by Google could turn into a golden opportunity for China's Lenovo Group as it expands beyond its success in the personal computer industry.
Google is selling Motorola's smartphone business to Lenovo for $2.9 billion, a price that makes Google's biggest acquisition look like its most expensive mistake.