Lenovo First Quarter Net Profit Climbs 23 Percent As Smartphone Sales Surge

[Ron Burgundy]

China's Lenovo Group, the world's biggest maker of personal computers, said net income jumped 23 percent in the first fiscal quarter, beating estimates, as it consolidated its position in the PC market while boosting smartphone shipments. The ambitious Beijing-based hardware company has agreed acquisitions worth over $5 billion this year alone, buying server and handset businesses in what it calls its "PC Plus" strategy to diversify away from the shrinking PC market. Over the past year it has displaced South Korean giant Samsung Electronics Co Ltd to become the No. 1 smartphone seller in China, according to recent estimates by IDC. For the first quarter, Lenovo reported 39 percent growth in worldwide handset shipments, helped by strong sales in China.

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