The third largest personal computer manufacturer is one happy company these days since their quarterly profit nearby doubles due to strong market sales. The executives of Lenovo attributed their strong sale to their decision to expand into mobile internet to compete with market leader Apple Inc. and other foreign rivals alon gside their developed markets in Germany and Japan. According to reports, Lenovo’s profit for the three months ending June 30 was $108 million, or 1.11 U.S. cents per share, up 98 percent from last year.
The company said their sales rose 15 percent from the same period last year to a quarterly record of $5.9 billion and global market share hit a high of 12.2 percent. With their increased profit, Lenovo, which acquired IBM Corp.’s PC unit in 2005, overtook Taiwan’s Acer Group this year to become the third-largest PC vendor in the world today. The strong sales of Lenovo had been attributed to the decision of the company to change its strategy by giving the same focus on profits fron their usual aim of expanding their sales.
CEO Yang Yuanqing said to keep their profits high the company will continue to invest in capturing growth in emerging markets while focusing on improving profitability. It can be recalled that the company joined the wireless Internet l ast year and launched smartphones and Web-linked tablet computers to battle with Apple,
South Korea’s Samsung Electronics Corp. and Taiwan’s HTC Corporation. To gain a step in the competition, Lenovo decided to offer a low-priced smartphone last week to target developing markets. Moreover, the company said their products market is now growing rapidly in Europe and the United States, where they earned a $77 million quarterly profit. The company hoped their profit will further rise in the rest of the year to benefit the officials and its employees around the world.