Lenovo profit boosted 36% by sales of phones, tablets

AP, BEIJING

Fri, Nov 08, 2013 - Page 15

Lenovo Group (聯想), the biggest PC maker, said yesterday its latest quarterly profit rose 36 percent as sales of smartphones and tablet computers more than doubled.

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

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

Lenovo said its sales of smartphones, tablet computers and other mobile devices rose 106 percent over the previous year to US$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 US$2.7 billion, while laptop sales rose 8 percent to US$5 billion.

“We are optimistic about the industry’s outlook,” Lenovo chairman Yang Yuanqing (楊元慶) said 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. 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 the coming years.

In its home market, Lenovo’s revenue rose just 1 percent to US$3.8 billion, reflecting a steady decline in economic growth in China.

It said smartphone and tablet sales in China rose 45 percent.

Lenovo was declared the No. 1 PC maker in the previous quarter by research firms Gartner Inc and IDC, finally surpassing rival Hewlett Packard Co, but that success was tempered by data that showed sales of desktop computers steadily declining.