Mobile devices overtake PC sales at Lenovo

Aug 19 2013, 11:20 IST
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SummaryThe milestone underlines the growing influence of Chinese companies like Lenovo in the shift from desktop to mobile computing.

managed the decline better than some of its

rivals. Its shipments of computers slipped 1.4% in the second quarter, to 12.6 million, compared with a decline of 11% in the overall market, according to IDC. As a result, Lenovo overtook Hewlett-Packard and become the world’s largest PC maker in the period. That helped Lenovo post a 23% increase in net income, to $174 million, for its financial first quarter, which ended in June. The results were above analysts’ expectations.

Despite the solid performance of the PC division, company executives have taken to calling Lenovo a PC-plus company. Yang stuck with a previous forecast that the company would sell 50 million smartphones and 10 million tablets in the current quarter. But he acknowledged that Lenovo still had work to do in getting out the message about its mobile devices in markets beyond China. “We still need to invest in the branding, we still need to invest in the channel and network building,” he said.

In China, Lenovo’s mobile business is growing rapidly. Canalys, a research firm, said it had shipped 10.8 million smartphones there in the second quarter, second only to Samsung, with 15.5 million. That is a strong base from which to develop new phones for other price-conscious developing markets, analysts say.

“The whole dynamic favors Lenovo a lot,” said Jenny Lai, an analyst at HSBC. “If you are No. 2 in the largest market in the world, your suppliers will come to you.”


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