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Home
Lenovo profit beats analysts’ estimates in second quarter of 2013

Lenovo profit beats analysts’ estimates in second quarter of 2013

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Lenovo logo

Lenovo logoLenovo (HKG:0992), the largest PC maker in the world, recorded strong profit growth in the second quarter due to increase market share for most of its products. The Chinese Group is about to expand on the market for smartphones and personal computers through acquisitions.

Lenovo net profit climbed 23 percent in the second quarter compared to the same period last year, from $141.4 million to $173.9 million. The company has improved its market share both on the PC segment, and smartphones and tablets sector, according to Bloomberg.

“The company is transforming itself from PC-based to smartphone- and tablet-based. There is robust demand for tablets and smartphones especially in China and emerging economies,” said Ricky Lai, an analyst at Hong Kong-based Guotai Junan International Holdings Ltd.

Sales of Lenovo smartphones have more than doubled in the second quarter compared to the same period of last year to 11.4 million units. Revenue rose 9.7 percent in the analyzed period to $8.8 billion.

“This was driven by strong smartphone demand in China and expansion into more countries outside of China,” the company announced today.

“We are definitely seeking opportunities in both the PC and phone areas. The industry is in a period of consolidation, so we definitely should take the opportunity if we can find the right target,” Yang Yuanqing, Lenovo Chief Executive Officer said in a phone interview today. He declined to say which companies would have the attention of Lenovo.

Sources close to the company said in May that the Chinese group had discussed taking over the server division of IBM, but negotiations failed because the two sides did not agree on a price. Lenovo eyes the manufacturer of BlackBerry smartphones, a Canadian company that announced it is considering several strategic options for the company’s future, including selling the company.

Lenovo’s PC market share fell 0.6 percent to 16.7 percent, but the Chinese company is ahead of HP (NYSE:HPQ) which had a 4.8 percent drop in shipments for a market share of 16.3 percent.

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