Lenovo Posts Big Profit on Rapid Mobile Growth
Lenovo posted record revenue and net income for the second quarter of its fiscal year. The $9.8 billion in sales represented 13 percent in annual growth while its net income of $220 million marked a hearty 36-percent growth year-over-year.
Lenovo claimed a 17.7-percent share of the global PC market, just managing to maintain the top spot ahead of HP. But it also managed a big rise in smartphone volume, jumping 78 percent annually. Lenovo reported strong growth in China and said it intends to expand its reach into 20 additional markets over the next few quarters.
According to Lenovo, the company’s tablet sales have increased a staggering 421 percent annually to 2.3 million units. The company noted that 77 percent of its tablets were sold outside of its native China.
Revenue for Lenovo’s mobile division rose 106 percent annually, while the company’s worldwide smartphone shipments were up 78 percent over the same time last year. Tablet shipments more than quadrupled from the same quarter a year ago.
Lenovo earlier this year had been rumored to be a potential bidder for BlackBerry’s handset business. Recent reports indicate the Canadian government may have blocked that deal, but it appears that Lenovo is growing its mobile business in lieu of acquisitions.