Lenovo records higher-than-expected profits and sales
Chinese PC maker Lenovo has recently posted its third-quarter profit and sales report, which has been higher-than-expected.
Lenovo said that it saw higher sales of laptops and mobile devices in emerging markets and its earnings rose 30 percent to 265 million dollars from a year earlier, while the analysts had expected 247 million dollars.
According to the BBC, the firm revealed that its revenues jumped by 15 percent to a record 10.8billion, led by sales in China.
However, the firm has warned that its future finances would be negatively impacted by its recent purchase of IBM's low-end server business and Google's Motorola Mobility.
Lenovo has paid more than 5 billion dollars, which amounts to nearly half of the company's market value, to acquire both the businesses.
The report said that investors have also raised questions about Lenovo's acquisitions, as they are not profitable, which Lenovo has insisted are 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.
(Posted on 14-02-2014)