The art of taxation consists in so plucking the goose as to get the most feathers with the least hissing - Jeane Baptiste Colbert
CHINESE HARDWARE MAKER Lenovo now sells more smartphones than PCs, a shift that has seen the firm's profits soar 23 percent in its latest quarter.
Lenovo announced its fiscal first quarter earnings on Wednesday, revealing a net profit of $213.5m (around £127.4m) for the three months ending 30 June, up from $174m in the same quarter last year. Revenues for the quarter came in at $10.4m, up 18 percent.
This, the firm claims, is due to record smartphone shipments, with Lenovo selling more mobiles than it did PCs during the three month period. The company announced shipments of 15.8 million mobile phones, a 39 percent increase year on year that it has credited to strong sales in China.
These shipments see Lenovo ranking as the world's fourth-largest smartphone maker, increasing its market share from 4.7 percent to 5.4 percent, IDC said.
While the firm sold more smartphones than PCs, it still saw a 15 percent gain in PC shipments to 14.5 million units during the quarter as the market shows signs of bouncing back.
It also bucked the tablet sales decline, shipping 2.3 million devices during the quarter, making it the world's third largest tablet vendor with growth of 67 percent, or "nearly eight times the pace of the market", Lenovo boasted.
Lenovo chairman and CEO Yuanqinq Yang was pleased with the firm's first quarter results, saying, "This has been a quarter of milestones for Lenovo - record PC share, a number three ranking in worldwide tablets for the first time, and an even stronger number four global smartphone position.
"As the PC industry recovers, the smartphone market continues its shift from premium to mainstream, and our acquisitions of Motorola Mobility and IBM x86 proceed toward completion, we see even more opportunity to keep growing rapidly.
"Lenovo continues to outperform the market and meet our commitments to improve profitability in our core businesses, while building strong pillars for future growth across our entire portfolio." µ
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