Lenovo to focus on smartphones amid record growth

Lenovo today announced plans to focus on the mobile devices market amid a shifting demand among consumers.

While it recorded a record growth in its second quarter results, Lenovo hopes it can increase its Mobile Internet and Digital Home (MIDH) sales which contributed to 15% of revenues.

CEO Yang Yuanqing says its position as the world’s fourth largest smartphone supplier, where shipments expanded over 78% per year, is crucial to the company’s future.

"Lenovo not only remains the top PC Company in the world, but is also already the number four player in both smartphones and tablets worldwide and continues growing rapidly. At the same time, we have achieved record revenue and record profit, and improved profitability significantly."

The Chinese firm has also widened its lead as the number one PC maker with a 17.7% market share up two points year-over-year. This is despite a 6% decline across the industry, which failed to deter Lenovo’s 1% gain.

Its PC shipments in the second quarter were 14.1 million units, the 18th quarter in a row that Lenovo outperformed in the industry as a whole. The long-term success translates to over 29 million units being sold in Q2, or four devices a second.

Perhaps Ashton Kutcher’s role as the spokesperson could be the reason behind Lenovo’s performance in the technology industry. Regardless if that's true or not, its shareholders can be thankful the company is heading in the right direction. Unfortunately, the same cannot be said for other companies in the unforgiving world of technology.

Source: Lenovo | Image via SCMP

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15 Comments

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Well,
At least Lenovo will not be making any money off me ever again after hiring that numbnut Kutchner to be it's spokesman!!

Actually,
They never have anyway as the laptop I have that's made by them was a freebie that I simply had to fix, to own. It's also probably the lousiest laptop of the 4 I have, so another reason not to contribute to their funds!

Good to see Android working well for them, I'm sure they will go far. One could only imagine what Nokia would have done had it gone down that path, Samsung would have had a strong competetior by now. Alas, they had to commit suicide by picking windows phone.

Considering Nokias current position its a funny way to commit suicide considering they are dominating the Windows ecosystem...

nokia was never just a hardware oem, they did software too... and with google they could say goodbye to all their location-based and gps software, entertainment service etc. and just start to spill out cheap plastic crap like samsung

there are quality android phones like the htc one or some of the sony xperia series but the pathetic about the whole android scheme is that these products sell much worse than the crap samsung sells... in this environment nokia has no real advantage, in the low cat samsung has dominance in moste markets - or, like in china the local oems unknown or almost unknown in europe and us of a

however its funny when android fans crying about nokia not doing android phones... for what? what do you need nokia for, quality? you have quality phones with android but you dont need them, you want 16 cores of unused cpu, 4 gigs of slowly filling memory and a big f-ing display to be able to make fun of iPhone resolutions because thats what floats your boat

and for this kind of crap samsung is just perfect for you, nokia would be a waste of quality engineering and material

brent3000 said,
Considering Nokias current position its a funny way to commit suicide considering they are dominating the Windows ecosystem...

yup, funny when fandroids say nokia is dead... while on their side motorola hit the ground and bought by google to be a patent library, lg declines, htc is slowly dying, sony-ericsson had almost no success after the 1.x android times and looking at sony it seems like this tendency was heredetery

only samsung prevails but its getting clearer that they dont give a crap about android ecosystem, they want full vendor lock in
one day all fandroids wake up and realize that samsung pulled a touchwiz over tizen or some other os of their own, give it an android emulator layer like bb did and fcuk up the whole shindig google has going on

and no, i dont want to see that, it WILL be bad for the market

morden said,
nokia was never just a hardware oem, they did software too... and with google they could say goodbye to all their location-based and gps software, entertainment service etc. and just start to spill out cheap plastic crap like samsung

Nokia would have been free to include their mapping software on their devices, they were in no way obligated to use Google maps, as long as they did not fork AOSP itself.

morden said,

there are quality android phones like the htc one or some of the sony xperia series but the pathetic about the whole android scheme is that these products sell much worse than the crap samsung sells... in this environment nokia has no real advantage, in the low cat samsung has dominance in moste markets - or, like in china the local oems unknown or almost unknown in europe and us of a

They haven't seem to have gone very far with wp in the us of a either.

morden said,

however its funny when android fans crying about nokia not doing android phones... for what? what do you need nokia for, quality? you have quality phones with android but you dont need them, you want 16 cores of unused cpu, 4 gigs of slowly filling memory and a big f-ing display to be able to make fun of iPhone resolutions because thats what floats your boat

The Nokia brand is very strong in Europe and Asia. This is why wp is seeing an uptick in marketshare in these regions, it is for the Nokia brand, not for microsoft's software. This is why Android fans want Nokia to build a phone with Android.

morden said,

and for this kind of crap samsung is just perfect for you, nokia would be a waste of quality engineering and material

samsung makes windows phones too, but sales are so embarassing they don't even mention it any more. If there is anything that is wasted, it is quality nokia handsets being ruined by software that the customer has clearly rejected.

recursive said,

samsung makes windows phones too, but sales are so embarassing they don't even mention it any more. If there is anything that is wasted, it is quality nokia handsets being ruined by software that the customer has clearly rejected.

dont be ridiculous - they did the omnia7 which was a pretty good and quality phone, then enter the omnia w with almost NO availability at operators and maybe one other i cannot even remember - which says a lot as i follow these things -, then there's the ativ line with again no availability and crap quality

i really think samsung only produces some windows phones for 1. fulfilling some contract points 2. not to disappear from the market completely
in the meantime nokias sole purpose was making windows phones which they did perfectly, the lumia series is a good line of products

and continuing the mantra "windows phone failed" isnt helping, all studies show growth... meanwhile android gets DECLINE while iOS gains users as well - so i know its hard for your tux-filled opensource-loving google-ridden brain to understand but the situation isnt that simple as fanboys might think

i admit being a msft fanboy and admittedly hating google for being a load-of-crap data mining company but gladly admit their success; the same storys with apple and i admire a quality product even if its plagued with android
so stop crying about nokia, you cant have it - phone up google and ask them to do something with motorola, they used to do quality products before the xoom and other worthless piece of market rejected android horror; and i DO HOPE msft does more with nokias phone division

morden said,

yup, funny when fandroids say nokia is dead... while on their side motorola hit the ground and bought by google to be a patent library, lg declines, htc is slowly dying, sony-ericsson had almost no success after the 1.x android times and looking at sony it seems like this tendency was heredetery

only samsung prevails but its getting clearer that they dont give a crap about android ecosystem, they want full vendor lock in
one day all fandroids wake up and realize that samsung pulled a touchwiz over tizen or some other os of their own, give it an android emulator layer like bb did and fcuk up the whole shindig google has going on

and no, i dont want to see that, it WILL be bad for the market

Here are the latest numbers from comscore for the top 5 OEM's:

Apple 40.6% 0.7
Samsung 24.9% 1.2
HTC 7.1% -1.4
Motorola 6.8% -0.4
LG 6.6% 0.0

Looks pretty healthy to me, I don't think the HTC, Motorola or LG are doing as bad as you make out. Note though, that Nokia is missing from that list. Samsung can pull a Tizen but that would only boot them out of Google services and crash their sales. While they make cutting edge (though not visually appealing) hardware, their software is lacking, and they don't have what it takes to pull an Amazon.

What google did with motorola is no different than what microsoft is attempting with nokia, i.e., absorb them for the patents.

And here are the top 5 by OS' marketshare:

Android 51.8%
Apple 40.6%
BlackBerry3.8%
Microsoft 3.3%
Symbian 0.3%

Notice how Microsoft has barely moved and still trails Blackberry, despite all the cash they have burned so far.

http://www.comscore.com/Insigh...one_Subscriber_Market_Share

brent3000 said,
Considering Nokias current position its a funny way to commit suicide considering they are dominating the Windows ecosystem...

Yes, all 3% of it, when had they gone with Android, they could have achieved up to 10x that percent of marketshare, considering that is where they were before they jumped on the sinking windows bandwagon.

1. dont just show a current state, go and see how the abovementioned companies declined and then you might get a brainwave

2. samsung is moving forward in software department, doing an own app store, communication services, media services, music service etc. so if you dont see whats coming you really are blind mate

3. msft buys nokia for patents and productivity+sales while google bought moto just to gain entry to the patent game they suck at

morden said,

dont be ridiculous - they did the omnia7 which was a pretty good and quality phone, then enter the omnia w with almost NO availability at operators and maybe one other i cannot even remember - which says a lot as i follow these things -, then there's the ativ line with again no availability and crap quality

Perhaps the operators / carriers did not want the phones (for whatever reason)?

morden said,

i really think samsung only produces some windows phones for 1. fulfilling some contract points 2. not to disappear from the market completely
in the meantime nokias sole purpose was making windows phones which they did perfectly, the lumia series is a good line of products

Which only means the phones aren't exactly flying off the shelf. Nokia's sole purpose was making a profit for shareholders, not being microsoft's b*ch. The lumia series is simply a ripoff of their Meego / N900 products, which were the real hot sellers, but were mercilessly killed by a microsoft trojan horse, eflop.

morden said,

and continuing the mantra "windows phone failed" isnt helping, all studies show growth... meanwhile android gets DECLINE while iOS gains users as well - so i know its hard for your tux-filled opensource-loving google-ridden brain to understand but the situation isnt that simple as fanboys might think

Its easy to show growth when your sales are in the single digits. Android decreased by 0.2 percent, and a lot of this had to do with the release of the new iPhones. It will be back to growth again next quarter where apple will take a beating.

morden said,

i admit being a msft fanboy and admittedly hating google for being a load-of-crap data mining company but gladly admit their success; the same storys with apple and i admire a quality product even if its plagued with android
so stop crying about nokia, you cant have it - phone up google and ask them to do something with motorola, they used to do quality products before the xoom and other worthless piece of market rejected android horror; and i DO HOPE msft does more with nokias phone division

I am neither a msft nor google fanboy, I simply happen to like open source software, which google is killing by the way. I agree that google are slimy when it comes to sucking data and I try and stay away from their services as much as I can for that, but believing that microsoft or apple are saints when it comes to data collection is being naive at best.

Both companies have their pros and cons, but in this case google simply has a much better os for smartphones than microsoft, and are putting in a lot more effort at making it better. Microsoft may have had a much better product in wp/rt had they started with a clean slate, they clearly had that chance (thrice), but they burnt all their energy trying to shoehorn the Windows of yesterday into tomorrow's portable devices, and seemed to have ended up with a dogs vomit, with much fragmentation across their product lines. Personally, I don't want to see them pull out of the smartphone market completely, but I don't think they have much chances of becoming the leader any time soon either.

morden said,
1. dont just show a current state, go and see how the abovementioned companies declined and then you might get a brainwave

If there is any company that truly declined, it would be Nokia. Htc, lg, sony et all are at least still in business, Nokia is the one folding shop.

morden said,

2. samsung is moving forward in software department, doing an own app store, communication services, media services, music service etc. so if you dont see whats coming you really are blind mate

Doesn't mean they don't suck at it. Software simply isn't in Samsung's DNA. Samsung might roll the dice with Tizen/bada/wp, but they won't do a Nokia and abandon their Android cash cow any time soon.

morden said,

3. msft buys nokia for patents and productivity+sales while google bought moto just to gain entry to the patent game they suck at

We all know who is extorting the most mony with patents, and it is Microsoft/Apple.

[quote=recursive said,]
If there is any company that truly declined, it would be Nokia. Htc, lg, sony et all are at least still in business, Nokia is the one folding shop.

Dude stop. Nokia is the #4 OEM in the US now. Nokia still sells more phones globally than LG, Sony, HTC and others. And this talk about "extorting money from patents" is ridiculously old and played out now. Company A & M spends X amount of dollars on R&D to create something that makes a particular process/function/etc possible. As a result of their hard work (and money spent), companies C, D, E, F, G, H, etc should have instant and free access to the hard work and R&D of companies A & B? And how, pray tell, do you justify this? Microsoft and Apple are protecting their R&D dollars as they should. What do you think business is dude? A charity? Why, oh why, should other companies benefit from another company's efforts without properly compensating them for it? Because their customers feel they are entitled to it? That kind of thinking is just...wow.

You know, as an after thought, regarding the effort you put into trying to persude Nokia to mfr Android phones...why is that effort needed? Does Android need more manufacturers? Is Android suffering from lack of OEMS and market share?

PS: Android is in no way shape or form a better OS than WP or iOS. For the miniscule segment of the smartphone market that wants to unlock, sideload etc, it may be. But for regular, normal, every day folk, it isn't. WP and iOS are miles miles MILES ahead in stability. WP runs smoothly on a POS throwaway phone and high end phones. I'm sorry man, a notification center and these minor things do not make Android a better OS.

recursive said,
Good to see Android working well for them, I'm sure they will go far. One could only imagine what Nokia would have done had it gone down that path, Samsung would have had a strong competetior by now. Alas, they had to commit suicide by picking windows phone.

Funny you should say that. FYI: Microsoft make more money from Android unit sales than Google does. Android is stolen property and companies making Android devices have to pay Microsoft. Moreover, as a piece of software Android is pretty rubbish - it's Java FFS. WP8 is technically far, far, far superior. How's the malware working out for ya?

recursive said,

Here are the latest numbers from comscore for the top 5 OEM's:

Apple 40.6% 0.7
Samsung 24.9% 1.2
HTC 7.1% -1.4
Motorola 6.8% -0.4
LG 6.6% 0.0

Looks pretty healthy to me

Why do you only quote numbers from the USA, a miniscule little backwater market that's smaller even than Africa FFS. What about the numbers for China, the world's biggest market? Or Asia as a whole?