Lenovo Group seems to have correctly judged the changing trend. The company’s profit for the April-June Period has beaten estimates. Interestingly, this jump is being attributed to the clever shift of focus to portable computing and smartphones. The sales of tablets and smartphones launched by the company have evidently begun to pick-up and are driving the profits. The company’s results feature a 23% jump in Net Profit (US$ 174 Million) which, for the company, is its second-best quarterly earnings in this segment.
Lenovo has been clearly making a strong entry within the aforementioned sectors with multiple models that attempted to bring above par computing experience with an affordable price tag. With tablets starting from a mere US$ 200 price-tag, the company has also launched several smartphones with varying screen sizes with equally varying price-points. Particular among those, the K, S, P and A Series have been smartly positioned as a clever way to extend mobile content to the digitally connected homes of today. In fact, the company doesn’t segregate the segments and has clubbed the operations under its Mobile Internet and Digital Home (MIDH) unit which is expected to grow at least 25% within this financial year itself. Surprisingly, the company has even overtaken another Chinese hardware maker ZTE and now sits comfortably as the world’s No. 4 smartphone maker in April-June with market share of 4.7%.
Has the PC era finally coming to an end?
The conglomerate which is often referred to as the largest PC famously bought IBM’s personal computing division. It is a fact that the sector is getting hit significantly by the smartphones and tablets. As these portable electronics gain more processing power and stellar screens, the only limiting factor will be the battery life, which is clearly not a factor for PCs.
But, the overall quarterly revenue for the ThinkPad maker rose 9.7% to US$ 8.8 Billion. This shows that the sector may have been impacted, but certainly not on its way out. What do you think?