Lenovo swings to profit on China strategy

Lenovo Group booked net profit of US$79.5 million for the quarter ended December 31 against a net loss of US$96.7 million the previous year after the PC maker shifted its sales strategy to target China and other emerging markets, Dow Jones reported. Shipments in China over the fiscal third quarter rose 54% year-on-year, accounting for US$2.3 billion, or 47% of Lenovo’s total revenue. The company said consumer demand had been strong while corporate demand for computer replacements could begin to rebound in the second half, but rising components costs and a move towards low-priced PCs could create difficulties in the future.