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Lenovo Reports 23% Q1 Profit Increase

Beijing — Lenovo Group reported a 23 percent increase in profits for its fiscal first-quarter, helped by surging smartphone sales as the PC giant continues its expansion into mobile technologies.

The company said net income climbed to $214 million in the three months through June, from $174 million in the same period a year earlier, the opening quarter of its fiscal year.

Recently, Lenovo has diversified its business offerings as the global PC market continues to decline. It recently agreed to buy IBM’s server unit and the Motorola handset brand.

Still, Lenovo’s core PC business, accounts for roughly 82 percent of sales, and the company continues to maintain its market edge. In fact, laptop sales rose 12 percent from the same period last year, even as global laptop shipments fell 3.7 percent for the industry, the company said.

The company posted 39 percent growth in worldwide handset shipments, most of which came from China, where it is now the No. 1 smartphone company, but Lenovo will prioritize overseas markets for growth in the space going forward.