[photopress:it_lenovo_ideapad.jpg,full,alignright]Lenovo, Asia’s biggest personal-computer seller, tripled profit, beating estimates.
Net income rose to $171.7 million, or 1.76 cents per share, in the third quarter ended December 31, from $57.7 million, or 0.64 cent, a year earlier.
Lenovo increased its distribution networks in India and eastern Europe and sold more notebooks in China, expanding in emerging markets to narrow the gap with Hewlett-Packard and Dell.
On the other hand Lenovo will is getting out of mobile phones. It is selling its handset unit for $100 million after shipments slumped 31%, while PCs climbed 22%.
Lenovo’s gross profit margin, or the percentage of sales left after deducting production costs, widened to 15.2% in the three months to December, from 15.1% in the previous quarter. The company benefited from lower component costs and the depreciation of the U.S. dollar against the renminbi.
Lenovo said this month it started selling IdeaPad notebooks in 14 markets including the U.S., France, Russia and Australia, after previously offering products to consumers only in China and other countries in southeast Asia.
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