Lenovo Group reported its first fiscal quarter results with revenue rising to $10.4 billion, an 18 percent increase year-over-year on the strong performance of the company’s smartphone and tablet sales.
The Beijing-based company said its earnings grew 23 percent during the quarter to $214 million while gross profit increase 13 percent year-over-year to $1.3 billion, with gross margin at 13 percent.
Lenovo said that during the first fiscal quarter its smart connected device shipments grew by 28 percent year-over-year and maintained its position as the world’s largest PC maker for the fifth consecutive quarter ending the quarter with 19.4 percent market share.
In tablets, Lenovo said it became the third largest vendor in the world with 2.3 million devices shipped and growth of 67 percent. For the first time on record, Lenovo sold more smartphones than PCs with 15.8 million units, up 39 percent year-over-year. Lenovo said it became the No. 1 vendor in China for selling smartphones. The Mobile Device Business – including smartphones and tablets – increased 32 percent year-over-year to $1.6 billion, or 15 percent of the total revenue during the quarter.
Yuanqing Yang, chairman and CEO of Lenovo, said in a statement that the company had record PC share, a No. 3 ranking in worldwide tablets for the first time and a strong position as the No. 4 supplier of global smartphones. Yang said that the PC industry is recovering and the smartphone market continues to shift from premium to mainstream and with Lenovo’s acquisitions of Motorola Mobility and IBM x86 “we will see even more opportunity to keep growing rapidly.”