Lenovo just posted its first quarter earnings, and for the first time, its smartphone and tablet sales have eclipsed those of its PCs—its core product since its inception.
The period ended June 30 showed strong revenue performance of $8.8 billion, a 10 percent increase year-over-year. Earnings grew an impressive 23 percent year-over-year to $174 million.
Its PC business being overtaken doesn’t mean it isn’t doing well there. In fact, it just became the world’s largest PC maker, taking its highest ever quarterly share of 16.7 percent to move 12.6 million units, it said.
But where Lenovo makes about 42 percent of its total sales in China, it can thank hot domestic demand for smartphones, which pushed up its mobile figures in the quarter.
According to Canalys estimates from the fourth quarter of 2012, Lenovo relies on China to sell more than 98 percent of its smartphones.
And as the Chinese market hops onto mobile phones, we saw Lenovo and fellow Chinese manufacturers Huawei and ZTE make it to the top five smartphone makers for the first time at the end of 2012.
Canalys estimated that Lenovo grew more than double year-over-year to make it into fifth place last year.
And globally, we’re seeing the tide finally shift to smartphones over feature phones. Gartner said that in the second quarter of 2013, smartphone sales have eclipsed feature phones for the first time.
In the same report, Gartner ranked Lenovo fourth smartphone maker globally, with 4.7 percent marketshare in the second quarter of 2013, moving 10,671 units over the period. Third place was LG at 5.1 percent.
Combined, they aren’t even close to world number one, Samsung, with 31.7 percent of the market, or 71,380 units. The only non-Android maker was Apple holding strong at second place, with 14.2 percent.