Lenovo smashes forecasts as its push in smartphones bears fruit

LENOVO, the world’s largest PC maker, yesterday delivered its second best ever quarterly results with a 23 per cent rise in net profits.

The jump came despite the overall PC sector declining by 11 per cent during the same period, according to Lenovo.

The company reported a $174m (£112m) net profit, beating market estimates, as it overtook Hewlett-Packard in the PC rankings, according to research from IDC.

A 105 per cent increase in sales of smartphones and tablets has helped to boost overall revenue by 10 per cent to $8.8bn, although unit shipments to Asia Pacific, which account for 15 per cent of total revenue, declined 8.1 per cent.

Shipments to Europe, Middle East and Africa increased by 18 per cent accounting for 22 per cent of total revenue, whilst in the Americas shipments increased by 29 per cent with especially strong sales in Brazil.

There has been speculation of potential interest in purchasing BlackBerry after Lenovo’s CEO Yang Yuanqing said during an interview with Bloomberg yesterday that “we are definitely seeking opportunities in both the PC and phone areas”, and also stated Lenovo will be more “proactive” in regards to acquisitions.

However, he declined to comment on BlackBerry specifically.