Friday April 18, 2014


question of the week

Survey results are meant for general information only, and are not based on recognised statistical methods.





Home »  News »  Business

Lenovo says profit up 34 per cent on mobile sales grow but global outlook challenging

BEIJING, China - Personal computer maker Lenovo Group said Wednesday its quarterly profit rose 34 per cent to a record high on strong sales of smartphones and tablet computers.

The company, vying with Hewlett-Packard Co. to become the world's biggest PC maker, said it earned $205 million in the three months ending in December. Revenue rose 12 per cent to $9.4 billion, also a record.

The results reflect a rapid shift in global consumer tastes toward mobile services. That is forcing traditional technology leaders to scramble to roll out new products and diversify into services as well as hardware.

Sales by Lenovo's mobile and digital home unit soared 77 per cent to $998 million, though that was only 11 per cent of total revenue.

The company said its smartphone business in China was profitable for the first time and handsets were launched in India, Indonesia, Russia and other markets. Shipments of media tablets rose 77 per cent to 800,000 units.

"The strong performance of our mobile Internet business is a significant strength that we believe will help us drive sustainable growth even in challenging market conditions," said chief financial officer Wong Wai Ming in a conference call with reporters.

Lenovo shipped 9.4 million smartphones during the quarter, all but about 400,000 of them in China, according to chairman Yang Yuanqing. He said the smartphone business outside China is "still in the first stage" and Lenovo needs to invest to gain market share before focusing on profitability.

Revenues in the bigger but slower-growing PC market rose 7 per cent to $7.9 billion.

Lenovo, which is based in Beijing and in Research Triangle Park, North Carolina, warned PC demand "remains challenging" due to weakening global economic conditions but said it plans to expand its cloud, services and other businesses.

In its home China market, PC shipments rose 2 per cent, down from the previous quarter's 8 per cent. Lenovo said that was still better than an industry-wide decline of 2 per cent in China, raising its market share by 1.4 percentage points to a record 36.7 per cent.

Shipments in the United States and the rest of North America rose 11 per cent over a year earlier.

Lenovo released a new version of its ThinkPad notebook computer, the X1 Carbon, in August that it said was lighter and quicker to mimic the convenience of a tablet. Lenovo acquired the ThinkPad brand with IBM Corp.'s personal computer unit in 2005.


Comments


NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Coast Reporter welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

blog comments powered by Disqus


About Us | Advertising | Contact Us | Sitemap / RSS   Glacier Community Media: www.glaciermedia.ca    © Copyright 2014 Glacier Community Media | User Agreement & Privacy Policy
Business in Vancouver Whistler Question Squamish Chief Powell River Peak Real Estate Weekly My Local Flyers

LOG IN



Lost your password?