Lenovo released details about its first fiscal quarter ending June 30, 2014 yesterday. The PC maker yet again surprised analysts and experts all around the world by recording above average figures.
The company is one of the few PC manufacturers to have remained profitable post PC era and looks like its strategy is still helping it to generate revenues and sales. The company’s profit grew by 23% as compared to last year and revenue grew by over 18% in comparison to the same quarter in 2013.
The company posted net profit of $214 million and total revenue of $10.4 billion for the first quarter of 2014.
Along with this impressive growth, the company’s smartphone shipments outdid PC shipments in this quarter. This means, Lenovo shipped more smartphones than PCs for the first time ever in the history of the company.
The earnings report that the company shipped around 15.8 million smartphone units in the quarter which is up by 39% as compared to the same time last year. On the other hand, Lenovo shipped 14.5 million PC units in the same quarter, which was a 15% growth from last year. One thing to note here is that, its total PC shipments grew at a time when laptop shipments saw a decline in the three months leading up to June.
As a result of this growth, Lenovo managed to remain the top PC manufacturer in the world by a market share of around 19.4%.
“This has been a quarter of milestones for Lenovo – record PC share, a number three ranking in worldwide tablets for the first time and an even stronger number four global smartphone position.” said Chairman, Yuanqing in a statement with the earnings report.
Over the course of time, the company is trying to diversify its product portfolio as well as expand into newer markets.
The company managed to record a growth of 67% year to year in tablet shipments which made it the third largest tablet manufacturer in the world.
Also, for the first time, nearly 20% of the smartphone sales made by Lenovo were outside its home country, China. This is an impressive growth as the company only made around 5% of its smartphone sales outside of China last year.
The increase in the smartphone shipments sold also makes Lenovo the fourth largest smartphone manufacturer in the world.
With Motorola’s acquisition, the PC manufacturer could soon give well established smartphone giants like Samsung and Apple a run for their money.
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