Lenovo Releases Q2 Financials, Mobile Sales Growing at Breakneck Pace

Yesterday Lenovo released its Q2 financials, which are available in shiny powerpoint form here for anyone interested. Among the rest of the generally favorable news, Lenovo notes that it is doing pretty well in the smartphone market, with smartphone volume growth up 18 times compared the previous year. The company claims it has also become the number two smartphone brand in China, commanding a 14.2 percent market share.

Desktops and notebooks still account for the vast majority of Lenovo’s business, accounting for more than 85 percent of the company’s revenue during Q2. But in addition to smartphone growth, the company has also seen success with its tablets, and currently holds the number two spot (by market share) in the Chinese tablet market. At present, mobile devices account for less than nine percent of Lenovo’s total revenue, but that number is climbing fast.

Lenovo revenue breakdown. (MIDH refers to revenue from mobile devices like smartphones and tablets)

It will be interesting to see how far this trend carries itself. Will Lenovo take the route of Apple and become a phone company that also makes a few computers? It’s clear that the company isn’t about to give up its massive desktop and notebook revenues just yet, and I’m of the opinion that the traditional computer is not about to be totally replaced by mobile devices anyway. But with mobile and smartphone growth moving so quickly, it’s hard to imagine Lenovo’s focus isn’t shifting a bit towards the mobile sector when the company makes its future plans.