Lenovo yearly profits jump by 29 per cent

Disappointing sales in China offset by growth in EMEA and Americas for world's biggest PC maker

Lenovo has reported a 29 per cent increase in its full-year earnings, with disappointing sales in China and of PCs offset by growth from other regions and in smartphone sales.

The firm made a record $817m (£485m) in net profit for the 12 months to March, and extended its market share in the PC business by selling 55 million units throughout the year.

The world's fourth biggest smartphone firm sold 50 million smartphones, a rise of 72 per cent year on year, and 9.2 million tablets in the same period.

Lenovo's January acquisition of Motorola Mobility from Google for just $660m in cash, and $2.9bn (£1.7bn) in total, signalled an intention to switch focus from the PC market to smartphones.

The firm has also agreed to buy IBM's low-end server unit for $2.3bn (£1.4bn), in another move away from selling PCs. However, both acquisitions did not have any effect on net profit for the year, according to Lenovo.

The firm's revenue jumped 14.3 per cent to $38.7bn (£22.9bn), with the EMEA region and the Americas making up for the slack in the firm's domestic market.

Sales in China rose only 1.3 per cent year on year to $14.7bn, but it still remains Lenovo's largest market. The EMEA region saw a 27.1 per cent hike in sales, and there was a 31.1 per cent jump in sales in the Americas.

"The record sales and profits that we delivered last year prove that Lenovo can grow and deliver its commitments, no matter the market conditions," said chairman and chief executive Yuanqing Yang in a statement.

Lenovo now has a 17.7 per cent global market share of PCs, and is third in PC shipments to the Americas, surpassing Apple.