Lenovo's Smart Assistant, a speaker made in collaboration with Amazon Alexa, will be available for purchase in May. (Photo : Getty Images)
Lenovo's surge in sales is brought about by increased PC revenue that made up for a slow turnaround in mobile phones.
Net profit grew to $173 million at the end of June from $105 million last year. Thomson Reuters Smart Estimates made a forecast that Lenovo will only hit average revenue of $130.1 billion.
Yang Yuanqing , Lenovo's chairman and CEO, said, "The PC market performed slightly better than expected due to stronger performance in mature markets."
He added, "Competition in the China smartphone market remained very keen while demand remained soft due to the slow economy."
The PC manufacturer shifted gears when it faced intense competition with Xiaomi, China's biggest smartphone producer.
Lenovo then focused on PC sales and consolidated its work on increasing shipment from the 4 percent dip in exports year on year.
Ken Hui, an analyst at Jefferies, wrote that Lenovo had to study the sustainability of its sales strategy in smartphones, noting that companies like Huawei were dominating the market for low-end units.
In May, Lenovo's CEO was already giving fillers that the company intends to strengthen its core business.
He said, "Last quarter, despite challenging economic and industry conditions that hurt our top line, the decisive actions we took mid-year allowed us to protect our profitability."
"We kept our core PC business strong, continuously improved profitability in enterprise and saw positive momentum in some key smartphone markets," he explained.
The company also focused on developing technologies for cloud and ensuring that mobile devices were capable of it, which will be done through a multi-business operating system.
Yang said, "At the same time, we will integrate our traditional strength in end-user devices with our new capabilities in cloud and infrastructure to attack the balanced Device + Cloud opportunities."
