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Lenovo announced this week that its Q1 net profit jumped 23 percent, helped by a strong surge in smartphone sales. The Chinese PC maker reported a net profit of $214 million for the April-June period, up from $174 million in the same period a year ago, comfortably beating analyst forecasts.
Lenovo reported 39 percent growth in worldwide handset shipments. The company is now the world's fourth largest smartphone maker with a 5.4 percent share, up from 4.7 percent a year earlier, trailing behind Samsung, Apple, and Huawei with 25.2 percent, 11.9 percent, and 6.9 percent share, respectively.
Last quarter also saw Lenovo smartphones outselling its PCs, with 15.8 million units. As for revenue, it rose 18 percent to $10.4 billion from $8.79 billion a year earlier.
Lenovo's PC business, which accounts for around 82 percent of the company's sales, continued to gain strength. The company reported an increase of 12 percent in laptop sales, outperforming the overall PC market, which saw a year-on-year decline of 3.7 percent in laptop shipments.
"Lenovo continues to outperform the market and meet our commitments to improve profitability in our core businesses, while building strong pillars for future growth across our entire portfolio", Lenovo Chief Executive Yang Yuanqing said in a statement.
Yuanqing also mentioned that the two big deals that are still pending regulatory approval: the acquisition of IBM's x86 server business and the purchase of Motorola Mobility from Google, are on schedule for closing.