Lenovo recently revealed quarterly profit shot up 36 percent as sales of mobile devices like smartphones and tablets more than doubled. Revenue for the quarter reached $9.8 billion, a 13 percent increase from a year earlier, with a net profit of $220 million, or $2.12 per share.
The company said sales of smartphones, tablets and other mobile devices rose 105 percent year-over-year to $1.5 billion to represent 15 percent of total revenue, up from just nine percent last quarter. Sales of traditional desktop computers, meanwhile, fell three percent to $2.7 billion while laptop sales were up eight percent to $5 billion.
PC sales in general have been down in recent years across the board as companies like Acer, Dell and HP have all reported either flat growth or declining shipments.
In a statement on the matter, Lenovo chairman Yang Yuanqing said the company was optimistic about the industry’s outlook. The PC market is recovering and tablet growth continues shifting to mainstream and entry-level segments as well as emerging markets. Yang said these are Lenovo’s strength areas and they are confident they will take advantage of these opportunities with continued strong growth.
Declared by research firms Gartner and IDC as the number one PC maker in the world, Lenovo has done exceedingly well in its home market of China as the country accounted for 40 percent of total revenue. It’s here where most of Lenovo’s smartphones are sold as they’ve yet to enter the US smartphone race despite having some impressive handsets in their arsenal.