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    Business / Technology

    Lenovo reports profit jump, revenue slump in Q3

    By Gao Yuan (chinadaily.cpm.cn) Updated: 2016-02-03 14:09
    Lenovo reports profit jump, revenue slump in Q3

    Customers buy computers at a store of Lenovo in Shanghai. [Photo/IC]

    Lenovo Group Ltd posted a 19 percent growth in profit amid lower revenue gains in its third fiscal quarter, the world's largest personal computer maker said on Wednesday.

    The Beijing-based company said its net income in the quarter that ended on Dec 31 stood at $300 million, beating analysts' estimates. However, Lenovo is still facing strong headwinds in various businesses.

    Because of lackluster demand in the Chinese smartphone market, Lenovo's smartphone volume declined by 18.1 percent year-on-year in the past quarter, with 20.2 million units sold.

    Yang Yuanqing, Lenovo's chairman and CEO, said the company will "build scale and efficiency" to accelerate growth in emerging mobile markets.

    "We will also make breakthroughs in mature markets with innovative products and premium brands, and expand in the open market in China with a stronger product portfolio," Yang said.

    Lenovo saw hyper shipment growth in emerging markets such as India and Indonesia. About 83 percent of its smartphones were sold outside China in its third fiscal quarter, compared to 75 percent in the second fiscal quarter, according to Lenovo.

    The sluggish worldwide PC market, peaking handset sales in China and unstable currencies in major markets dragged down Lenovo's quarterly revenue by 8 percent year-on-year, the company said.

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