Click here to preview the new Fast Company

Want to try out the new

If you’d like to return to the previous design, click the yellow button on the lower left corner.

Lenovo Makes Record Profits Thanks To Smartphones; LG Doesn't

Smartphones make Lenovo a pile of cash, as European fines gobble LG's smartphone profits.

Lenovo just posted record fourth-quarter earnings equivalent to $205 million, and TheNextWeb says it's also achieved a profit in its smartphone sales for the first time. Revenues were also up 12% year-on-year, and profit jumped 34%. China, Europe, the Middle East and Africa were all critical sales areas for the China-based firm, and smartphones rose to 11% of the total company revenue figure—up from 7% in the previous year.

LG made profits from smartphones too, shipping 23% more smartphones than in the previous quarter and totaling 8.6 million units shipped for the period. It earned $2.58 billion in revenues, up 15% on the preceding quarter. But flat sales of TVs and a huge price-fixing fine imposed by the E.U. meant the company posted an overall company loss of nearly $429 million.

Lenovo's boss recently forecast a dim future for Apple, but can smartphone sales make or break big companies like this? What do you think?

Add New Comment