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Lenovo profit up 23 percent on mobile growth

Published on NewsOK Modified: August 13, 2014 at 10:35 pm •  Published: August 13, 2014
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BEIJING (AP) — Lenovo Group, the world's biggest personal computer maker, said Thursday its latest quarterly profit rose 23 percent on strong growth in sales of smartphones and other mobile devices.

The company said it earned $214 million, or $2.06 per share, in the three months ended June 30. Global revenue rose 18 percent to $10.4 billion.

Sales of mobile devices rose 32 percent over a year earlier to $1.6 billion. The company is investing heavily in smartphones, tablet computers and other wireless devices, and has said it expects mobile sales to be the bulk of its future revenue.

Lenovo, based in Beijing and in Research Triangle Park, North Carolina, expanded its market presence by acquiring part of IBM Corp.'s server business in January for $2.3 billion. A week later, it bought the Motorola Mobility smartphone business from Google Inc. for $2.9 billion.

With those acquisitions and the recovery of the PC market, "we see even more opportunity to keep growing rapidly," said chairman Yang Yuanqing in a statement.

Sales of Lenovo's traditional desktop PCs rose 20 percent to $3 billion, accounting for 29 percent of total revenue. The company said shipments rose 12.1 percent over a year earlier, compared with an industry average of 2.4 percent.

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