In Lenovo, mobile devices outnumber PC sales

For the first time, Lenovo sold more portable devices than personal computers (PCs). The brand is achieved at a time when the Chinese company strives to reproduce, in the area of smartphones and tablets, his Ascension to the rank of world's largest seller of PCs.
In the three months ended June 30, revenue from the Division of mobile internet and digital home, comprising mainly smartphones and tablets, increased 105% in the company's fiscal first quarter, compared to the same period last year. Sales of smartphones more than doubled, while the Tablet more than tripled, according to Lenovo.
The rapid rise occurs at a time when Lenovo supplanted Hewlett-Packard as the world's largest manufacturer of PCs in sales. Lenovo accounted for 16.7% of worldwide sales of PCs in the second quarter of the year, according to IDC. The Chief Executive of Lenovo, Yang Yuanqing, said that the company's rise to the top of the PC market showed the flexibility and agility of the company in an industry in which products have become commodities.
"The markets for smartphones and tablets are undergoing a similar transformation. We are confident that we will be able to make success in the PC market in this area, "said Yang.
Lenovo exceeded expectations with an increase year to year 23% of net income, to $ 174 million, in the first fiscal quarter. Quarterly revenue increased 10% to $ 8.8 billion.
The increase in profitability was driven by migration to more sophisticated products and reducing costs. But Lenovo said that the profitability growth in the segment of mobile devices will be able to slow down to the extent that the company increase its market share.
"Our Division of smartphones in China is very healthy. Outside of China, it is still in the investment phase ", said Yang. "We will invest more in brand management and the construction of canals."
According to IDC, Lenovo was the second largest selling smartphones in China, behind Samsung Electronics, and the fourth largest in overall sales of smartphones in the second quarter. The contribution of the products of the Division of mobile internet and digital home to the company's revenue jumped from 14% in the quarter ended in June, from only 7% a year ago. Lenovo chose not to comment on rumors that you can buy the Canadian maker of BlackBerry smartphones with problems and pleaded for sale.
Yang said that although the company intends to make acquisitions, it doesn't look at any particular business.