Research giants Gartner and IDC recently announced that Beijing-based Lenovo Group has surpassed Hewlett-Packard in global PC sales after standing at the No. 2 spot for years. But last week, the plot thickened: Lenovo now sells more mobile devices—tablets and smartphones—than PCs, according to the company’s FY 2013/2014 Q1 earnings report. Lenovo reported $8.8 billion in revenue and $174 million in profit, a year-over-year growth rate of 10% and 23%, respectively, beating its own revenue record and exceeding analysts’ predictions.
As it grows year over year at a rapid clip, Lenovo is differentiating itself from its largest PC competitor, Hewlett-Packard, by marketing a connected suite of devices. Since Lenovo’s smartphones have yet to hit most major Western markets, most smartphones sales have come from the company’s native China, where it makes about 42% of its total sales. The report made clear that Lenovo now thinks of itself as a “PC Plus” brand, the plus meaning smart-connected devices. “While driving profitable growth in our core PC business, we are rapidly transforming our company into a PC Plus company,” Yang Yuanqing, chairman and CEO of Lenovo, said in the report. “The PC Plus market requires fast, efficient innovation as it moves quickly from premium products to mainstream ones and from mature market domination to emerging market hyper growth.”
For more on Lenovo’s global marketing plan, check out “Rebooting the Brand.”