What a ride it has been for Lenovo of late. Last quarter, the company unseated HP to sell the most computers globally and on Thursday the company said it’s selling even more mobile devices helped largely by a doubling of phone sales in the last three months. Alongside the 14.5 million PCs Lenovo moved between April and June this year, it sold 15.8 million phones and 2.3 million tablets. The PC sales figure is actually down 11 percent from the year ago period but as Lenovo positions itself as what it calls a “PC plus” company, mobile device sales helped offset lost revenue from lower computer sales.
China’s Lenovo Group said first-quarter profit jumped 23 percent, beating estimates, as a surge in smartphone sales showed how quickly the world’s biggest personal computer maker is transforming itself into a major player in mobile technology. Beijing-based Lenovo said on Thursday net income climbed to $214 million in the three months through June from $174 million in the same period a year earlier, the opening quarter of its fiscal year. That was ahead of estimates of $202 million, according to a Thomson Reuters SmartEstimate poll of analysts. This year the ambitious hardware company has accelerated its strategy to diversify away from the crumbling PC market, agreeing to buy IBM’s server unit and the iconic Motorola handset brand in deals worth over $5 billion. Lenovo’s Chief Executive Yang Yuanqing said he sees potential for more smartphone sales growth outside China – though he won’t chase it at the expense of profit margins. Lenovo reported 39 percent growth in worldwide handset shipments, helped by strong sales in China. The company has displaced South Korean giant Samsung Electronics Co Ltd over the past year to become the No. 1 smartphone seller in China, according to recent estimates by IDC.
