Lenovo profit up 30 pct but slow growth

Lenovo profit up 30 pct but slow growth

BEIJING - The Associated Press
Lenovo profit up 30 pct but slow growth

Lenovo’s profits, though up 30 pct, are down from last quarter’s 59 percent. EPA photo

Lenovo Group said yesterday its quarterly profit rose 30 percent on strong sales in developing markets, but growth slowed amid global economic weakness.

The world’s second-largest personal computer maker said it earned $144 million in the three months ending June 30 on $8 billion in global sales. The profit growth rate was down from the previous quarter’s 59 percent increase.

PC shipments in the Asia-Pacific region and Latin America rose 59.2 percent while those to Europe, the Middle East and Africa were up 62.3 percent.

“Despite uncertainties in global economic conditions impacting the PC market in the short term, we will remain focused to outperform the worldwide PC market in a profitable way,” said chief financial officer Wong Waiming in a conference call with reporters.

Mobile internet

“Our strategic investments in mobile internet have started contributing to the growth in sales and improved profitability.”

The company passed Dell Inc. last year as the second-biggest PC maker and said yesterday it has narrowed the global market share gap with industry leader Hewlett-Packard Co.
Lenovo said it sold 5 million smartphones in China in the quarter, passing PC sales by number of units for the first time.

The company, with headquarters in Beijing and in Research Triangle Park, North Carolina got into wireless Internet in 2010. It has launched smartphones and Web-linked tablet computers to compete with Apple Inc., South Korea’s Samsung Electronics Corp. and Taiwan’s HTC Corp.