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 Makes Record Profits Thanks To Smartphones; LG Doesn’t

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?

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