Lenovo is the world's largest PC maker whose product line includes PCs, tablet computers, mobile phones, servers, computers, tablet computers, mobile phones, workstations, servers, electronic storage devices, IT management software and smart TVs. Lenovo bought IBM's PC business in 2005.
Lenovo sets sights on smartphone and tablet expansion after record quarter
Technology giant plans to sell smart devices in more markets, encouraged by 36 per cent jump in quarterly profit to a record US$219.7 million
Computer giant Lenovo plans to sell smartphones in 20 more markets over the next few quarters and increase media tablet sales worldwide, buoyed by significant gains in its fiscal second quarter to September.
Lenovo, which operates in more than 160 countries, yesterday reported a 36 per cent year-on-year jump in quarterly net profit to a record US$219.7 million, up from US$162 million a year earlier, due to strong smartphone and tablet sales.
The result was aided by a record high 17.7 per cent market share for the firm to remain the world's largest supplier of personal computers.
The company saw its net profit beat a US$202.7 million consensus estimate from 17 analysts compiled by Bloomberg by 8 per cent.
Revenue rose 13 per cent in the quarter to a record US$9.8 billion, up from US$8.7 billion a year earlier.
Chairman and chief executive Yang Yuanqing said: "We promised to keep improving profitability, and we delivered on that."
Yang said Lenovo would step up sales and marketing of smartphones and tablets, part of the company's Mobile Internet Digital Home business, which also includes internet-linked smart televisions. The unit accounted for 15 per cent of total revenue in the quarter, compared with 8 per cent previously.
Lenovo will expand smartphone sales into at least 20 more markets in the next couple of quarters after initially making the devices available in mainland China, Russia, Vietnam, the Philippines, Indonesia and India.
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The firm is the world's No4 supplier of smartphones.
The company would push for greater tablet sales through existing computer channels worldwide, Yang said.
Lenovo posted a record high 2.3 million global tablet shipments last quarter, which made it one of the industry leaders.
Yang said Lenovo's goal was to raise the contribution of smartphones and tablets to total revenue to about 50 per cent.
In a Barclays report yesterday, lead author Kirk Yang, the firm's head of technology hardware research for Asia excluding Japan, said: "We expect [Lenovo's] fiscal third quarter to December to see solid quarter-on-quarter growth on the back of a high seasonal effect and new model launches."
Wong Wai-ming, Lenovo's chief financial officer, declined to directly address reports that the Canadian government had opposed the company's much-speculated interest in buying struggling smartphone maker BlackBerry.
As a general comment, Wong said: "We have not been informed by any government or regulatory agency that we can or cannot buy anything."
Lenovo's shares yesterday rose 2.14 per cent to HK$8.60, their highest close since reaching HK$8.83 on March 1.