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Lenovo posts huge profits

by on13 February 2014

Higher laptop sales

Lenovo, the world's largest PC maker, has posted record third-quarter profit after selling shedloads of laptops and mobile devices in emerging markets. The Thinkpad maker said earnings rose 30 percent to $265million from a year earlier, beating analysts' estimates of $247million.

Revenues jumped by 15 per cent to a record $10.8billion again thanks to sales in China. It was not all good news though, the firm warned its future finances will be negatively impacted by its recent purchase of IBM's low-end server business and Motorola Mobility. Lenovo paid more than $5billion or nearly half of the company's market value to buy both businesses in January.

Lenovo said it would take up to five quarters - or more than a year - to turn around the Motorola business, which it bought from Google for $2.9bn. But the Chinese firm stressed that the acquisitions are all part of a longer-term strategy to move away from its reliance on PC sales and expand its presence in the server and smartphone sectors.

Lenovo said it shipped a record 32.6 million devices in the third quarter, or nearly five devices every second.

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