Lenovo’s smartphones and tablet business clocks $718 million revenue in second fiscal quarter

Telecom Lead Asia: Lenovo said its smartphones and tablet business has clocked $718 million and contributed 8 percent revenue to its total income in the second fiscal quarter.

“Entering its second full year of operations, Lenovo’s Mobile Internet Digital Home (MIDH) group is forging ahead in leaps and bounds, with consolidated sales of US$718 million, a 155 percent increase year-over-year in the second fiscal quarter, and eight percent of the company’s overall sales,” Lenovo said in a statement.

With smartphones and tablets leading the Company’s PC Plus charge, Lenovo has continued to outpace the hyper-growth in shipments in China, and is now the second largest vendor in China in each of these product categories, the company said.

Lenovo has gained 12.5 share points in smartphones year-over-year in the second quarter for an overall market share of 14.2 percent in China. During the second quarter, Lenovo announced that it would begin selling smartphones in Indonesia, Philippines and Vietnam, and last week, added India to the list.

Last week, Lenovo launched five smartphone models in India and they would be initially available in Gujarat, as well as southern states of Karnataka, Kerala, Tamil Nadu and Andhra Pradesh in two-three days.

Lenovo Group’s total revenue for second fiscal quarter ended September 30, 2012 reached $8.7 billion, up 11 percent.

This balanced growth is the result of the company’s continued focus on its “protect and attack” strategy, whereby Lenovo strengthens its position in those places or markets where it enjoys a solid business, while simultaneously reaching outwards into new places or markets where opportunities to reach even more customers present themselves.

Entering these new markets is essential to Lenovo continuing its position as a leader in the PC Plus era, where tablets, smartphones and smart TVs continue to gain traction and capture record customer acceptance.

Lenovo clocked net income of $162 million in the second quarter, up 13 percent year-over-year.

“With the strong execution of our Protect and Attack strategy, Lenovo has continued its strong and balanced growth momentum. Our global PC market share reached another historic high, moving us closer to our dream of becoming the worldwide PC leader. With four years’ effort, our Consumer PC business has become the world’s number one in this segment for the first time. Our smartphone business in China, which we started only two years ago, has again strengthened its number two position,” said Yang Yuanqing, chairman and CEO of Lenovo.

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