Lenovo profits surge 36% year-on-year to $220M as it squeezes its rivals out of the dwindling PC market

Today Lenovo revealed its financials for its fiscal Q2 in 2013, and unlike competitors with long legacies in the PC market, it appears to be doing quite well. Marketwatch reports that the firm kept $220 million in net income, marking a 36 percent increase year-on-year, and brought in $9.8 billion in revenue, marking a 13 percent annual increase.

Breaking down the numbers further: Lenovo shipped 14.1 million PCs internationally, helping it occupy 17.7 percent in global market share. That’s over two points higher than the previous quarter, and the firm is now officially approaching the 1/5th benchmark.

Given that global PC shipments contracted 7 percent in Q3 2013, Lenovo has pulled off quite a feat by managing to earn money in a market where its peers are gasping for air. HP, which Lenovo recently overtook in market share, saw its profits fall 15 percent for the quarter ending in August. And Asian neighbor Acer posted its largest net loss ever at $445 million, prompting CEO JT Wang to announce his upcoming resignation.

Moreover, the Chinese brand can rest at ease knowing its smartphones and tablets – the products that matter these days – are also steadily making their way into consumers’ hands. Marketwatch states that its smartphone shipments grew 64 percent year-on-year, and its global tablet shipments grew over 400 percent year-on-year, breaking the 2 million unit threshold.

Lenovo currently intends to grow its market share in mobile by establishing brand awareness in countries outside China. Its new Yoga tablet, bolstered by endorsements from actor Ashton Kutcher, marks the company’s most aggressive mobile pitch to international audiences to date.

Lenovo also made headlines recently when news broke confirming it had pursued an acquisition of Blackberry. Its ambitions were crushed when the Canadian government rejected the bid over national security concerns.

(Editing by Paul Bischoff)