Smartphone sales boost Lenovo’s Q3 revenues by 31%

Lenovo reported a 31% rise in its revenues during the third quarter of 2014 to $14.1bn, mainly fuelled by its smartphone unit, which reported a two times rise in its sales during the quarter.

Despite revenue rise, the PC maker’s net profit slumped to $253m, a drop from $265m reported during the corresponding quarter last year, mainly due to the expenses related to two recently completed multi-billion dollar acquisitions.

The Chinese firm acquired US-based Motorola Mobility for $2.91bn and IBM’s low-end server business System x for $2.1bn, in efforts to expand its business away from the fading PC market.

Lenovo chairman and CEO Yuanqing Yang said: "This quarter, we are at the starting line of a new race, but the results show that we have the right strategy, we made the right acquisitions and we executed well globally, so I am confident we are ready to win."

"Our core PC business maintained its leading position and further improved profitability. The two newly acquired businesses are achieving great momentum in their first quarter of integration."

"They are definitely becoming our growth engines. Motorola is already a global strength: for the first time it sold more than 10 million units in the quarter and it is now re-entering the China market."

"Meanwhile, we have a strong start with the System x integration, even while we further refine and develop it, leveraging Lenovo’s operational excellence and efficiency to be even more competitive."

During the quarter, the company’s PC unit generated $9.2bn, while sales at its Mobile Business Group reached $3.4bn.

The combined shipments of Motorola and Lenovo-branded devices enabled the Chinese firm to capture 6.6% of the global market share, up 78% year-on-year, making it the third largest smartphones vendor after Samsung and Apple.

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