Quartz’a Heather Timmons reports that China’s Lenovo has just edged out HP for the number one PC maker and reported better-than-expected first-quarter earnings on Thursday, with the company’s net income rising 23% year-over-year to $173.9 million and revenues by 9.7% to a record $8.9 billion.
The takeaway, MS. Timmins observes, is that the company’s shift from PCs into smartphones is getting results, and with its PC unit shipments down 11% from a year ago, for the first time ever, its smartphone and tablet sales surpassed PC sales during the quarter thanks to an aggressive push in developing markets.
However, Ms. Timmins notes that while Lenovo’s stated goal of unseating Apple in products or profitability remain far-fetched, CEO Yang Yuanqing told Bloomberg Thursday he plans to be “proactiv e” about acquisitions sparking speculation that Lenovo could snap up Blackberry, thereby scooping up key patents and boosting its smartphone expansion aspirations.
The Bloomberg report says that Yang Yuanqing is seeking acquisitions as Lenovo weathers a global slump in PC demand by developing mobile devices to lure customers from Apple, and cites analyst Ricky Lai, an at Guotai Junan International Holdings Ltd. in Hong Kong commenting: “The company is transforming itself from PC-based to smartphone- and tablet-based.”
The Bloomberg report is here: