As the year comes to a close, it is time for technology companies to take stock of their earnings and losses in anticipation of the new year. For one company in particular, Lenovo, it seems it has been a banner of a year.
The Chinese manufacturer of personal computers and mobile devices announced in its second quarter financials that it had made a net quarterly profit of $219.7 million. That is a 36 percent increase year-over-year; an increase surely obtained by its record of 29 million devices sold in the quarter.
It is clear that in the second quarter with mobile shipments outpacing PC shipments, Lenovo’s future earnings are more closely tied with mobile development. Perhaps one key to Lenovo’s booming success has been its line of tablet laptop devices, such as the ThinkPad convertible tablet.
The ThinkPad is a 2-in-1device that has a keyboard and screen like a laptop, but the keyboard is detachable so that the consumer can also enjoy the convenience of a tablet.Also out of the gates is Lenovo’s Yoga Tablet. This latter device is peculiarly designed with a cylindrical base to mirror the folded pages of a magazine, but it also makes it easier to hold and maneuver.
Another feather in Lenovo’s cap is its first-time rise over LG as the third largest smartphone manufacturer in the world. Though Samsung and Apple still occupy the top spots in the American and European markets (with 32.1 percent and 12.1percent market shares, respectively), it seems that China’s large population helped propel Lenovo to the number three position, edging out the more globally recognizable LG brand.
In the future, despite a failed BlackBerry bid, Lenovo is prepared to leverage mergers and acquisitions in order to expand its business. Yang Yuanqing, CEO of Lenovo, recentlyannounced that “Mergers and acquisitions are always useful tools for us to expand business into new markets, and we are open to deals that can boost our business.”
Lenovo’s strides forward have also attracted the endorsement of top Hollywood talent. Actor Ashton Kutcher is Lenovo’s unofficial “product engineer” and with him come millions of admiring fans, many of whom may be willing to jump on the endorsement bandwagon.
Mobility is the current trend in computing, and it remains to be seen if Lenovo can maintain its progress. Its modest PC development alone is not enough to sustain the company in these changing times. But can enhanced devices, revamped designs, and the endorsement of a Hollywood actor really bring Lenovo to the forefront of the mobile device market? If this year is any indication, then the answer is a resounding yes.
Lenovo has broken out of the limited Chinese market to become a powerhouse in the tablet, laptop and mobile device arenas. It will be interesting to see what the company has in store for its consumers in the years ahead, but it is likely a brand name we will be hearing more of in the future.
Jennifer Thayer is a technology writer who enjoys covering apps, gadgets and the latest tech news. Follow her on Twitter.