Lenovo’s profits increase 25pc as budget tech market grows

21 May 2014

Chinese smartphone and desktop PC manufacturer Lenovo has posted a fourth-quarter 25pc rise in profits as budget options of the hardware become more popular.

The company’s latest figures show that on the final day of March this year, Lenovo’s net income reached US$158.3m, up from US$126.9m at the same time last year, Bloomberg reported.

This comes despite the fact that worldwide the numbers of desktop PCs sold have been decreasing steadily as more people move towards mobile devices and tablets computers. However, Lenovo has become the No 1 seller of desktop PCs, which has contributed to its overall boost in income.

With its new-found power and influence, the company has confirmed that with its recent acquisition of Motorola Mobility for US$2.9bn, it will now be looking to expand into the developing markets of Africa, South America and the Middle East.

Lenovo’s smartphone division saw an increase, too: shipments jumped 63pc in the fourth quarter to 12.9m units across the globe, reflecting an increase by 3.6pc last year to 4.6pc this year.

Lenovo CEO Yang Yuanqing said the company will also look to expand into the server market for cloud computing. Last January, Lenovo announced its acquisition of IBM’s low-end server business for an estimated US$2.3bn.

Lenovo image via Shutterstock

Colm Gorey was a senior journalist with Silicon Republic