Lenovo's sales surge in China and emerging markets

PC maker sees sales double in emerging markets, with sales in China up 50 percent

Lenovo Group's sales in China rose 50 percent and sales in emerging markets doubled during the company's fiscal first quarter ended June 30, it said Thursday.

Strong performance in these markets helped push Lenovo's overall sales up 50 percent over the same period last year, to $US5.1 billion. The company, China's largest PC maker, reported a quarterly profit of $55 million compared to a loss of $16 million one year ago.

While China and emerging markets provided most of the growth, Lenovo also did well in mature markets, where sales rose 39 percent, to $US1.8 billion. Sales in China and emerging markets were $2.5 billion and $821 million, respectively, during the quarter.

Describing the company's financial results as "excellent," Lenovo Chairman Liu Chuanzhi said the company's decision to focus on China and fast-growing emerging markets was paying off.

"Our performance was strong globally, Lenovo has a clear strategy when and where to focus on gaining share, and when and where to focus on maximizing profit, and we executed that strategy well," Liu said in a statement.

"Despite the ongoing challenges and uncertainties of the world's economy, I firmly believe that Lenovo's future is bright," he said.

On the product side, laptops were Lenovo's biggest seller, providing 61 percent of the company's global revenue. Desktops accounted for 33 percent of sales, the company said.

During the quarter, Lenovo also launched its first new smartphone since reacquiring its former mobile division. Sales of the handset, which was released during the middle of the quarter, were "encouraging," the company said, without providing numbers.

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