Why Lenovo is 'not satisfied' despite huge profit

Beijing-based PC and smartphone manufacturer Lenovo increased its PC market share, laptop and computer sales, turning in huge profit. However, a fall in mobile devices sales left the company's CEO 'unsatisfied', and curbed investor optimism about turning the world's biggest PC maker into a mobile devices force, Reuters reports.

The company now has a 20 per cent PC market share and has extended its lead over Hewlett-Packard and Dell, according to IDC research.

Laptop and desktop computers sales rose 0.9 per cent and 6.4 per cent respectively in July-September, helping revenue rise seven per cent to $10.5 billion.

Mobile device sales fell six per cent to $1.4 billion (£880 million ), which left Lenovo CEO Yang Yuanqing feeling unsatisfied.

„Smartphone revenue was not that exciting, it was a little bit of a problem", he told Reuters.

The company's net profit rose 19 per cent, to 262 million USD in the second quarter, Lenovo says. China's smartphone market has never been this competitive, with rivals like Xiaomi, and the Korean Samsung. Xiaomi, a fast-growing smartphone maker is currently the world's third handset maker.

Lenovo's CEO Yuanqing says China's smartphone market is crowded, and that the company will have to focus on foreign markets to stay in the game.

"But now the China market is not hyper-growing any longer," he said on Thursday, PCWorld reports. "It has been saturated. If you want to win you have to find new growth areas."

"If you only play in China, you will not win", he added.

Last week Lenovo bought Motorola for 2.91 billion USD, a faded brand still present in North America and Europe, two markets we can expect Lenovo to focus on.