Lenovo posts $55m quarterly profit, misses analyst estimates

Lenovo (0992.HK), China’s largest personal computer manufacturer, fell short of analyst expectations as it posted a net profit of US$54.9 million, or US$0.54 a share, in the three months to June, Bloomberg reported. In the same period last year, Lenovo’s fiscal first quarter, the company recorded a loss of US$16 million. Looking to compete with rivals including Hewlett-Packard (HPQ.NYSE) and Acer (ACID.LSE, 2353.TW), Lenovo has shifted its focus from premium Thinkpad laptops to low-priced products targeted at consumers in emerging markets such as India and Russia. China sales rose 50% to US$2.51 billion – 49% of the overall total – while sales in emerging markets jumped 80% to US$821 million. The company has also boosted investment in its mobile phone division to counter rising competition in the computer market, with R&D expenditure up 56% for the quarter. Lenovo launched its LePhone smartphone in China in May.