Lenovo profit rises in Q3 on strong PC sales in China

Lenovo's net profit rose 25 percent year-on-year in the third quarter.

Lenovo, China's largest PC vendor, reported strong net profit growth in the third quarter as it increased market share in China and gauged brisk sales of laptops and smartphones.

The Beijing-based company said its revenue rose 22 percent to US$5.8 billion in the three months ended Dec. 31, while its net profit rose 25 percent to $100 million.

Mobile computing led the company, with laptop PC revenue accounting for $3.4 billion of overall revenue in the quarter, up 15 percent year on year, Lenovo said in a statement.

Lenovo also saw gains in its smartphone business, which has become a new area of growth for many PC vendors. Lenovo smartphone sales doubled in the third quarter compared to the previous three months, the company said in a statement.

The company credited stronger smartphone sales to its new Mobile Internet and Digital Home business group, which it formed during the quarter to focus on mobile devices, including tablets and smartphones, as well as devices for Cloud computing and smart TV.

"Looking forward, we will invest in building our global brand, driving more product innovation and creating an even more efficient end-to-end business model... we are confident we can continue to outgrow the market and deliver strong results across our business," said Yang Yuanqing, Lenovo's CEO, in the statement.

Lenovo also signed an important agreement with NEC in Japan last month. NEC is Japan's largest PC vendor and the two companies will work under a joint venture to further grow market share in the nation.

The deal "establishes Lenovo as the leader in two out of three of the largest PC markets in the world," Lenovo said in the statement.

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