Lenovo, a billion dollar technology firm, has reported a huge boost in profit last quarter, thanks to smartphone and tablet sales.
Lenovo just ended out an incredibly profitable quarter, closing its first quarter with $127 million in earnings with socks at 1.22 cents. This places Lenovo not far behind the top company Hewlett-Packard. Even though the profits were largely because f mobile devices sales, Lenovo still makes the bulk of its total revenue from standard PCs. In fact, these computers account for 83 percent of Lenovo sales. But the edge that Lenovo has over competitors is its rapidly expanding mobile device market. The company already beat out competitors though its smartphone sales in the first quarter. Since PC sales are dropping dramatically in favor of their mobile counterparts, companies such as Lenovo are reaping the benefits of this shifting trend.
Even though the market is moving away from PCs, Lenovo will not soon drop production of these computers. Yang Yuanqing, chairman for Lenovo, discussed the importance of continuing to grow the mobile computer division of the company, but not to abandon the PC market. "We will focus out investments on the fast-growing tablet, smartphone, and enterprise hardware areas," he stated, "while working to enhance the profitability of our core PC business." Lenovo has only been producing smartphones since 2010, but has seen record sales because of it. Ending out this past quarter, the fiscal year up to March 31 brought in new record for the company of $34 billion, placing Lenovo within the realms of possibly overtaking HP in the future. Retweet this story
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