Personal computer maker Lenovo Group reported a 36% profit increase in its latest quarterly results, as sales of smartphones and tablets grows.
Shift to mainstream market
In the three months ending last Sept. 30, Lenovo earned $220 million or $2.12 per share, while revenue increased by 13% from last year to $9.8 billion.
The results reflect consumers new spending, as people shift to going online through wireless connection.
The company’s strong profit come at a time when most traditional PC makers are struggling with weak demand for desktop and laptop computers.
Lenovo has adapted to decreasing demand by making smartphones and tablets and diverting its focus on products that can earn better profits.
Stable source of profit
Sales of its smartphones, tablets, and other mobile products jumped by 106% compared to last year to $1.5 billion. Mobile’s share of revenue rose 15% from the past quarter’s 9%.
Its solid earnings were also boosted by higher sales in its home China market, which has been a stable source of profit in recent years.
“These are Lenovo’s strength areas,” said chairman Yang Yuanqing in an earnings announcement. “We are optimistic about the industry’s outlook.”