Lenovo has just released its latest quarterly results and besides the good news about its $8.8 billion in revenue and $170 million in profits, the company also announced that for the first time it generated more income from the sales of smartphones and tablets than from PCs! What is ironic about that is that Lenovo is the world’s largest PC vendor!
According to data released by Gartner and IDC, Lenovo shipped more PCs than any other company in the second quarter of 2013 – some 12.6 million units. Not only did it rank number 1 in PC sales ahead of HP and Dell but it also managed to grow its market share in a time when PC sales are taking a massive dive.
That makes it even more startling that sales of Lenovo’s smartphones and tablets has actually surpassed PCs. By Lenovo’s reckoning it is now the world’s fourth largest smartphone supplier and has achieved the fastest growth among the top five vendors.
The secret to Lenovo’s success is China, where it is now the second largest smartphone company. Lenovo China marked up US$3.7 billion in sales during the quarter which accounts for 42 percent of the company’s worldwide revenue. A large part of those sales where for smartphones and tablets, which together grew 76 percent when compared to last year.
Outside of China Lenovo’s smartphones aren’t so well known but its tablets can be found almost worldwide. To boost its smartphone sales outside of China, the company has started selling handsets, including the Intel powered K900, in Malaysia, Saudi Arabia, Thailand, and the United Arab Emirates.
With such diverse results it is clear why Lenovo no longer sees itself as a simple PC company. The phrase used by Yang Yuanqing, the chairman and CEO is that Lenovo is a “PC Plus” company, his terminology for a tech company adapting to the post PC era.