Lenovo posts 30% profit rise on strong smartphone salesFebruary 13, 2014 - 09:29 AMT PanARMENIAN.Net - Computer maker Lenovo Group reported Thursday, Feb 13, 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, according to the Associated Press. 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. The Motorola acquisition will lift Lenovo from No. 4 among global smartphone makers to No. 3, according to Yang. Yang said Lenovo has plans to return the Motorola business to profitability. He said increased economies of scale from combining it with Lenovo's existing smartphone business also will help to cut costs. "We cannot just help the Motorola business to grow and improve profitability, but also it will help us to strengthen our position in China," he said. Lenovo has said it expects mobile technology to supply the bulk of its revenue in coming years. Revenue in Lenovo's home China market was flat at $4 billion, which the company said reflected a slowdown in the local PC market, where Lenovo is the biggest-selling brand. Sales in the rest of the Asia-Pacific region rose 22 percent to $1.6 billion and in Europe, the Middle East and Africa by 25 percent to $2.9 billion. Revenue in the Americas rose 36 percent to $2.3 billion. Related links: Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | Government reveals details from Pashinyan’s meeting in border village Prime Minister Nikol Pashinyan has met with a group of residents of a border village in Armenia’s northern Tavush province Narek Manasyan wins European Boxing Championships silver for Armenia Armenia’s Narek Manasyan (92kg) won Armenia’s second silver medal at the European Boxing Championships 2024 on April 28. Blinken urges Azerbaijan to continue negotiations with Armenia Secretary of State Antony J. Blinken has urged Azerbaijani President Ilham Aliyev to continue negotiations with Armenia. Pashinyan, Blinken talk Armenia-U.S. ties over the phone Prime Minister Nikol Pashinyan had a phone conversation with US Secretary of State Antony Blinken on April 28, Pashinyan’s office reports. |