Lenovo sees profit double to £65m


Lenovo sees profit double to £65m

Kathleen Hall

Chinese computer maker Lenovo's net profit nearly doubled to $108.8m (£65m) in the three months ended 30 June, compared with the same period last year. Sales at the company rose by 15% to $5.9bn during the quarter.

Around half of Lenovo's PC sales come from China. Despite a year-over-year 9.4% decrease in the industry's PC shipments across mature markets, Lenovo grew sales in the quarter by 8.5%, it claimed.

Lenovo is the third biggest player in western Europe's large enterprise segment behind HP and Dell.

Laptop computers were the largest contributor to the company's sales worldwide, generating 59.8% of revenue.

Lenovo, which acquired IBM's PC unit in 2005, is also positioning itself to compete with Apple in the mobile computer market, and recently launched a new range of ThinkPad tablets.

The Chinese computer maker reported an increase in handset shipments of 34%, with demand growing in China for its smartphone and LePad tablet products.

"The board is very satisfied with Lenovo's first quarter results. Since we adjusted our leadership team in early 2009, our business continues to climb and everything has been executed well according to our original plans," said Lenovo Chairman Liu Chuanzhi.

In June 2011, Lenovo acquired German mobile communications company Medion AG. The company said the deal will double its market share in Germany.

Lenovo also completed the formation of a joint venture company with NEC Corporation this year, forming the largest PC group in Japan.

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