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Lenovo's profits soar 23% based on smartphone, mobile growth

No. 1 global PC manufacturer Lenovo has watched its profits rise 23 percent based on the company's mobile efforts
By Michael Hatamoto from Aug 14, 2014 @ 4:33 CDT

No. 1 global PC manufacturer Lenovo saw its first quarter net profit climb 23 percent as the company's smartphone and mobile sales surge. The smartphone sector ramped up 39 percent, while tablet and other mobile devices have seen impressive sales for the company.




Revenue increased from $8.79 billion up to $10.4 billion during the first quarter, also boosted by PC shipments continuing to outsell Hewlett-Packard, Dell, and other rivals. The Chinese company will continue to look to diversify its product offerings for its customers.


"We believe Lenovo's PC business will remain solid given the better global PC outlook," said Ric Cheng and Kirk Yang from Barclays, in a recent report. "Its smartphone shipment momentum is likely to pick up."


The Chinese company quickly dominated its home PC market, but made strong acquisitions, such as IBM's personal computing division also helped internationally. In the U.S. market, Lenovo sales reps work directly with businesses and value-added resellers (VARs) to boost sales and marketing efforts.


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