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Lenovo posts record profit as smartphone sales surge

The world's leading computer maker, Lenovo, announced record profits on Wednesday as its smartphone sales in China and around the world soared to new heights.

Chinese computer maker Lenovo said Wednesday its profits had soared to an all-time high as smartphone sales boomed in China and other markets.

The Hong Kong-listed firm logged an annual net profit of $817 million (597 million euros), up 29 percent on the year as smartphone shipments around the world swelled by nearly three-quarters to 50 million.

"The record sales and profits that we delivered last year prove that Lenovo can grow and deliver its commitments, no matter the market conditions," said the company's chairman and CEO, Yang Yuanqing.

Revenue also shot up 14 percent in the last fiscal year to $38.7 billion, the company said in a filing to the Hong Kong stock exchange. Shares in Lenovo rose 3.4 percent at the news - their best performance in six weeks.

A giant push

The company does most of its business in China, where sales reached $14.7 billion as smartphone deliveries nearly doubled to 44 million over a year ago.

Lenovo is vying to become the world's third-largest cell phone producer as the market for traditional PCs slows down due to consumers' growing affinity for mobile devices.

The company also sold a whopping 9.2 million tablets, four times more than a year ago. Laptop sales rose 10 percent, bringing in $17.9 billion in revenue, while desktop computer sales were up 5 percent to $11 billion.

In January Lenovo acquired the telecom firm Motorola Mobility from Google for $2.9 billion, although the sale is still pending a green light from regulators.

cjc /hg (Lenovo, AP, AFP, Reuters)

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