Lenovo's burgeoning smartphone arm continued to grow in Q3 2013/14 with shipments increasing 47% year-over-year.
The Chinese manufacturer announced that for the third quarter running its smartphone and tablet shipments (17.3 million devices) surpassed its PC sales (15.3 million), with tablet performance growing 300% year-over-year for a record high of 3.4 million.
Lenovo now holds 4.8% of the worldwide smartphone market, making it the world's fourth largest smartphone supplier. It will be confident of this growing further after its acquisition of Motorola Mobility. According to the Financial Times, the smartphone and PC maker has set a target of turning around the loss-making company in between three to five quarters. In terms of its own financials, Lenovo recorded a Q3 gross profit of $1.36 billion (£817 million), resulting in a 15% year-over-year increase, while its operating profit grew 37% to $334 million (£200 million). Quarterly revenue also grew 15% to $10.8 billion (£6.49 billion).
CEO, Yang Yuanqing, said: ‘Lenovo had outstanding performance last quarter, delivering both record revenue and record profit. Leveraging strong execution of our strategy, innovative products and growth in our PC Plus business, we continue delivering on our commitment to improve our profitability and we are confident we will maintain this momentum in our existing businesses. Further, the Motorola and IBM server acquisitions that we just announced are a perfect fit with our PC Plus strategy. While our top priority now is full participation in the regulatory approvals process, I am confident that from day 1 after closing, these businesses will quickly begin contributing to our performance and develop into pillars for long-term, sustainable growth.’