Lenovo posted a $219 million quarterly profit yesterday, up from $162 million a year earlier. Revenue was $9.8 billion, up from $8.67 billion. The numbers were boosted by strong sales of tablets and smartphones in certain markets. Smartphones currently account for about 20 percent of Lenovo's sales, but the company hopes to get them to 50 percent over the next five years.
Lenovo Chief Executive Officer Yang Yuanqing said the ultimate goal is to sell heaps of competitive phones in emerging markets, where the average consumer can’t afford an iPhone. He said the first wave was successful in Asian markets and that Lenovo is aiming to triple the number of markets in which it sells its smartphones.
According to Forbes, over the next few quarters Lenovo smartphones will start selling in at least 20 new markets in the Middle East, Latin America and Africa. The focus is likely to remain on emerging markets but it is becoming obvious that it’s only a matter of time before Lenovo smartphones appear in western markets.