Lenovo is doing exceptionally well as far as turning a profit goes. Their net income climbed 23% in the first fiscal quarter, which are even better results than they expected. Lenovo's net income rose to $214 million mark in the three month period through June. In the same period last year however their net income was $202 million. According to Thompson Reuters SmartEstimate poll of analysts those results beat the estimated $202 million, which are great news for the biggest maker of personal computers in the world.
Lenovo reports 39% growth in worldwide handset shipments in the first quarter, they have exceptionally good results in China. Revenue rose 18% to $10.4 billion, European sales helped a lot. Lenovo spent over $5 billion this year on acquisitions alone on handset businesses and servers as a part of their "PC Plus" strategy. They acquired IBM's low-end server unit and Motorola Mobility from Google, a very well known acquisition that I believe you're familiar with. Though both of these are still awaiting for U.S. regulatory approval, which is expected to come soon. Lenovo's CEO Yang Yuanging said that closing these deals is their priority in the following statement: "While our top priority now is full participation in the regulatory approvals process, I am confident that from day 1 after closing, these businesses will quickly begin contributing to our performance and develop into pillars for long-term, sustainable growth," This Beijing giant de-throned Samsung Electronics and became the number 1 smartphone seller in China over the past year, according to IDC (International Data Corporation) that is.
In a world where PC market is becoming smaller and smaller each day, Lenovo managed to strive as well. Global laptop shipments fell 3.7% and their laptop sales rose 12%. Note that Lenovo's number 1 venture is still its PC business as it accounts for approximately 82% of company's sales.
If anyone wondered how Lenovo is doing this is the answer, they're doing great basically. When almost everyone else is facing difficulties in laptop sales for example, Lenovo is striving in that aspect and even raising the bar. We'll see how the rest of the year will go for the Beijing-based giant, but things are looking better than expected thus far.