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What a year it's been for Lenovo. In the second quarter, two independent market research firms -- International Data Corporation (IDC) and Gartner -- crowned Lenovo king of PCs in terms of shipments, and the company continues to find ways to flip a profit in what it considers a "tough" market. Lenovo's revenue for its first fiscal quarter ended June 30, 2013 was $8.8 billion, a 10 percent jump compared to a year ago, while earnings jumped 23 percent year-over-year to $174 million. It wasn't all because of traditional PC sales, though.
Lenovo started expanding its reach into mobile as part of its transformation into a "PC Plus" company. It was a smart move on Lenovo's part, as it saw combined sales of smartphones and tablets surpass PCs for the first time ever during the quarter, the company said.
"In a tough PC market, Lenovo became the clear No. 1 for the first time and continues to improve profitability. Our strong performance in PC is fueled by balanced growth, through our consistent execution of the right strategy," said Yang Yuanqing, chairman and CEO, Lenovo." While driving profitable growth in our core PC business, we are rapidly transforming our company into a PC Plus company. The PC Plus market requires fast, efficient innovation as it moves quickly from premium products to mainstream ones and from mature market domination to emerging market hyper growth. This kind of market plays to Lenovo’s proven strengths. Lenovo is now better positioned than our competition to take advantage of these clear trends."
Lenovo's an underdog in the handheld mobile market, which is currently dominated by Samsung and Apple. However, counting Lenovo out of the race would be a mistake when you consider the success it's been able to achieve in a slumping PC market, seemingly defying the odds quarter after quarter.