Lenovo profit up 30 percent on smartphone growth

Published on NewsOK Modified: February 12, 2014 at 10:06 pm •  Published: February 12, 2014

BEIJING (AP) — Computer maker Lenovo Group reported Thursday that quarterly profit rose 30 percent to a record high on strong smartphone sales and said its acquisition of the Motorola Mobility smartphone business will accelerate its global expansion.

Profit for the three months ended Dec. 31 was $265 million, or $2.52 per share, the company said. Quarterly revenue topped $10 billion for the first time, rising 15 percent to $10.8 billion.

Sales of smartphones and other mobile devices rose 73 percent to $1.7 billion. Sales of laptop computers that supply half the company's revenue rose 11 percent to $5.4 billion while sales of desktop PCs rose 12 percent to $3.2 billion.

Lenovo is expanding aggressively into mobile technology as consumers shift to going online wirelessly and demand in its traditional PC market cools.

Lenovo, based in Beijing and in Research Triangle Park, North Carolina, expanded its product line and global 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.

"Today the Lenovo smartphone business is profitable but we don't make a lot of money. So with the acquisition of Motorola Mobility, we become a global brand," said chairman Yang Yuanqing in a conference call with reporters.

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