Lenovo's mobile devices business had a revenue increase of 105 percent year-over-year for the quarter

As PC popularity shrinks, some tech companies are moving to the more lucrative mobile sector. For Lenovo, this seems to be a step in the right direction as its smartphones and tablets outsell PCs in the first quarter.

For the quarter ended June 30, 2013, Lenovo reported smartphone sales of 11.4 million units, which represents a 131 percent year-over-year increase. As for tablets, the company sold 1.5 million units.

Lenovo's entire mobile devices business (includes both smartphones and tablets) had a revenue increase of 105 percent year-over-year for the quarter, achieving $1.2 billion USD. This accounted for 14 percent of Lenovos' total quarterly revenue. 

Lenovo's smartphone business largely stands on China's shoulders, with about 80 percent of sales coming from the country alone. In fact, Lenovo has become the second largest smartphone vendor in China (behind Samsung). This has made Lenovo the fourth largest smartphone maker in the world for the quarter with a market share of 4.7 percent (up from 3.1 percent a year earlier).

Lenovo is expanding its mobile products to ther countries as well, such as Southeast Asia, Russia and India. It also plans to sell smartphones to the U.S. and Europe at some point in the future. 

The PC business, on the other hand, slipped 1.4 percent to $12.6 million USD. However, it wasn't all bad considering Lenovo took Hewlett-Packard's (HP) spot as the No. 1 ranked PC maker in the world.

Also, IDC said the PC market declined 11 percent overall in the quarter.

“In a tough PC market, Lenovo became the clear #1 for the first time and continues to improve profitability. Our strong performance in PC is fueled by balanced growth, through our consistent execution of the right strategy,” Yang Yuanqing, CEO of Lenovo.  “While driving profitable growth in our core PC business, we are rapidly transforming our company into a PC Plus company. The PC Plus market requires fast, efficient innovation as it moves quickly from premium products to mainstream ones and from mature market domination to emerging market hyper growth.  This kind of market plays to Lenovo’s proven strengths.  Lenovo is now better positioned than our competition to take advantage of these clear trends. ”

Lenovo's net profit hit $174 million USD, which is an increase from $141 million USD in the year-ago quarter. The company's revenue reached $8.8 billion USD, which represented a year-over-year increase of 10 percent.

Source: Lenovo

"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings

Latest Blog Posts
The Best Android Apps
Saimin Nidarson - May 20, 2017, 6:16 AM

Copyright 2017 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki