Mobiles drive hits Lenovo profit
PC-maker Lenovo has fallen short of analysts’ forecasts because of the cost of competing in the mobile market.
It posted quarterly net income of $13 million (€10.5 million), compared with a loss of $264 million a year earlier, on 56% higher sales of $4.3 billion, the company said in a statement.
An average of analysts’ estimates by Bloomberg forecast a profit of $30.7 million, with higher costs in the mobile segment blamed for the miss.
Lenovo returned to the mobile market in January after paying $200 million to reacquire its handset business, which it had sold off two years ago.
It said shipments of Lenovo Mobile devices grew 32% year-on-year and was now one of the top three in the China market.
CEO Yang Yuanqing told a press briefing he expected the new LePhone would outsell the iPhone in China this year.
He said the company’s focus would be on increasing market share “rather than on profitability,” Bloomberg said.