Lenovo income from smartphones and tablets rose 105 percent to $1.2 billion in the first quarter of fiscal 2014.
Smartphones and tablets (Lenovo Mobile Internet Digital Home (MIDH) products) represent 14 percent of the company’s total revenue during the quarter.
In China, Lenovo’s smartphone shipments increased 121 percent. Lenovo is the second largest smartphone supplier in China.
In India, Lenovo does not figure in top 5 smartphone market share list.
In the first quarter, Lenovo began selling smartphones, including the new K900 — based on Intel’s Atom Z2580 processor — in Malaysia, Saudi Arabia, Thailand, and the United Arab Emirates.
Lenovo’s tablets shipments grew more than three times. Growth driver was ThinkPad Tablet 2 and Lenovo’s seven-inch tablets, the A1000 and A3000, as well as the ten-inch A6000.
Yang Yuanqing, chairman and CEO, Lenovo, said: “While driving profitable growth in our core PC business, we are rapidly transforming our company into a PC Plus company. The PC Plus market requires fast, efficient innovation as it moves quickly from premium products to mainstream ones and from mature market domination to emerging market hyper growth. This kind of market plays to Lenovo’s proven strengths. Lenovo is now better positioned than our competition to take advantage of these clear trends.”
Meanwhile, Lenovo first quarter revenue rose 10 percent to $8.8 billion. Lenovo’s earnings increased 23 percent to $174 million in the first quarter of FY 2014.
Operating profit grew 11 percent to $202 million.
Lenovo says shipment of smart-connected devices (PC, smartphone and tablet products) grew 41 percent in the first quarter.
Lenovo’s smartphone strategy has paid off well as the combined sales of smartphones and tablets surpassed PCs for the first time ever during the quarter. During the first quarter, Lenovo smartphone shipments grew 132 percent.
Lenovo’s increased revenue growth in China was driven in large part by the success of its smartphones and tablets, which together grew 76 percent year-over-year, and demonstrated the Company’s continued transformation to a PC Plus company. During the first quarter, Lenovo further strengthened its number-one position in China, resulting in market share of 35.8 percent, as the company continued to outpace its main rivals, particularly in the emerging cities and rural markets.