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The world's largest PC maker now sells more smartphones and tablets than computers
In yet another sign of the changing times, Lenovo, the world’s largest PC maker has revealed it now sells more smartphones and tablets than computers. The milestone was announced during the company’s earnings report for its first fiscal quarter ended June 30, which saw a 23 percent year on year rise in profit to $174 million, while total revenue rose 10 percent to $8.8 billion. About $1.2 billion of that came from the mobile devices unit.
Specifically, the company said sales of smartphones had more than doubled during the quarter to 11.4 million, while tablets reached 1.5 million. In contrast, desktops and laptops were down 1.4 percent to 12.6 million.
The news reflect not only a stagnant PC industry, but also the growing influence of Asian countries in the shift from desktop to mobile computing. About 80 percent of its smartphone sales came from China, where it’s currently the second-largest vendor, but the company has also started selling the devices in Southeast Asia, Russia and India. Only starting next year Lenovo is expected to sell devices in U.S. and Europe.
The company has long credited its ‘Protect and Attack’ strategy for their consistently healthy results and so far successful transition to the so called post PC era -- it defends markets where it already has a strong presence like China, grows in emerging markets, and uses developed market strength to fund new categories.
It should be noted that the company still makes most of its revenue from traditional desktop and notebook computers -- 77 percent of it to be precise. And while Lenovo is facing the same challenges as the rest of the PC industry, it has managed to decline at a slower pace than the average, which was 11 percent for the quarter.
Lenovo may be the first major PC manufacturer that hasn't been blindsided by a mobile shift but it still has a plenty of work ahead to catch up with the current leaders. To put things in perspective, during the same quarter Samsung shipped 73.3 million Android phones and Apple sold 31.1 million iPhones.
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