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Friday, November 8, 2013

Lenova Quarterly Profit Raised By 36% :

The Lenovo Group, the world’s top supplier of personal computers, said on Thursday that its latest quarterly profit rose 36 percent as sales of smartphones and tablet computers more than doubled.   Lenovo earned $220 million, or $2.12 a share, in the three months ended Sept. 30, the company said. Revenue rose 13 percent from a year earlier to $9.8 billion.






The results reflect the shift underway as people switch to going online wirelessly and manufacturers that had counted on the bulk of their revenue from desktop PCs scramble to keep up.

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

“We are optimistic about the industry’s outlook,” Lenovo’s chairman and chief executive, Yang Yuanqing, 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,” Mr. Yang said. “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, N.C., has said it expects mobile devices to make up the bulk of its business in the coming years.

In the Chinese market, Lenovo’s revenue rose just 1 percent, to $3.8 billion, reflecting a steady decline in economic growth. It said smartphone and tablet sales in China rose 45 percent.

Lenovo was declared the No. 1 personal computer maker in the previous quarter by the research firms Gartner and IDC, surpassing Hewlett-Packard. But that success was tempered by data that showed sales of desktop computers steadily declining.

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