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AS HP Struggles Lenovo Sales Climb 21%

AS HP Struggles Lenovo Sales Climb 21%

Lenovo also beat analyst estimates as the world’s biggest PC
maker widened its lead over rivals. Personal computer shipments rose to an annual
record with market share rising in all regions including Australia said senior
executives.

Sales for the period climbed 21 percent to $11.3 billion,
missing the $12.1 billion average of analyst estimates. Growth would have been
28 percent if not for currency pressure, the company said overnight

The company also maintained its status as the biggest
smartphone maker behind Samsung Electronics and Apple while it broadens into
new businesses including enterprise computing.

“Lenovo’s increasing market share in PCs helped them
leverage scale to cut costs and boost margins,” said Vincent Chen, an analyst
at Yuanta Financial Holding Co. in Taipei who rates the stock hold. “The rising
U.S. currency hurt both demand and their pricing during the period.”

Lenovo rose 1.1 percent to HK$13.50 at the close in Hong
Kong trading. The stock has climbed 32 percent this year, outpacing a 17
percent gain in the benchmark Hang Seng Index.

The Company said that currency fluctuations will keep the PC
business “soft” this year, Yang said, adding Lenovo plans to combine software
and cloud services with its hardware products in the future.

Global PC shipments declined 5.2 percent during the quarter
as the global replacement cycle faded, researcher Gartner Inc. said last month.

The quarter was Lenovo’s first full reporting period to
include results from the $2.8 billion purchase of Motorola Mobility from
Google.

That unit is on track to meet its previously-announced goal
to turn profitable within four to six quarters of the acquisition, Yang said.