Lenovo says quarterly profit up 90 percent

Published on NewsOK Modified: May 23, 2013 at 1:53 am •  Published: May 23, 2013
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BEIJING (AP) — Computer maker Lenovo Group said Thursday its latest quarterly profit rose 90 percent as sales of smartphones and mobile computing technology expanded.

Lenovo said it earned $127 million, or 1.22 cents per share, in the three months ending March 31. Revenue rose 4 percent over a year earlier to $7.8 billion.

Lenovo ranks a close second behind Hewlett-Packard Co. as the biggest maker of personal computer makers but growth in that market has slowed as consumers shift to mobile Web surfing on smartphones and tablets.

Lenovo said sales of desktop and laptop PCs both declined 2 percent to $2.4 billion and $4.2 billion, respectively, but still made up a combined 83 percent of its business.

Sales of smartphones and other mobile Internet and "digital home" products rose 74 percent to $736 million, accounting for 9 percent of revenue.

"We will focus our investments on the fast-growing tablet, smartphone and enterprise hardware areas, while working to enhance the profitability of our core PC business," said chairman Yang Yuanqing.