Lenovo Thursday reported that net income for its fiscal first quarter rose an impressive 23 percent to $173.9 million vs. $141.4 million a year earlier, beating analysts' estimates. Revenue rose 9.7 percent to $8.79 billion for the quarter. Lenovo credited its performance to booming sales of smartphones and tablets, which have for the first time surpassed sales of PCs for the company.
The world's No. 1 PC maker, with headquarters in Beijing and Morrisville, N.C., also reported that PC shipments were flat. Worldwide PC shipments are down 11 percent, according to market-research firm IDC.
"While driving profitable growth in our core PC business, we are rapidly transforming our company into a 'PC-plus' company," said Yang Yuanqing, chairman and CEO of Lenovo, in a statement.
Lenovo said that while PC shipments were lackluster, its laptop sales, which account for 52 percent of revenue, rose 4.7 percent. PCs now represent 28 percent of Lenovo's total revenue, while mobile devices rose to represent 14 percent of total revenue.
Sales of tablets and smartphones increased 105 percent for the quarter, according to the company. Lenovo said it is now the world's fourth-largest seller of smartphones, with global shipments jumping a whopping 121 percent.
In Lenovo's earnings statement, Yuanqing said the company had a target of 50 million smartphone and 10 million tablet sales.
PUBLISHED AUG. 15, 2013