PC maker Lenovo is branching out into China's smartphone market.
The Chinese company said net income grew by 30% to $265.3 million in the final three months of the year. Operating profit rose by 37%, clocking in at $334.2 million for the same period.
The results put Lenovo on solid footing as it branches out from its core PC business and enters the smartphone business in a big way.
"This acquisition perfectly fit into our strategy," said Lenovo CEO Yang Yuanqing. "We plan to relaunch, re-introduce the Motorola brand to China and other emerging markets ... In China, Motorola is still a respected brand."
The acquisition could keep Lenovo's smartphone sales on an upward trajectory. Sales rose 47% in the most recent quarter due to strong growth in Asia.
China is already the top source of revenue for the company, reaching $4 billion in the most recent quarter alone. But gaining market share in the smartphone world won't be easy, as the company faces stiff competition from other firms including Huawei, Xiaomi and Apple (Fortune 500). ,
Recent research also suggests that smartphone adoption is also beginning to slow in China.
But the company, which recently announced another major buy of $2.3 billion for IBM's low-end x86 server business, still plans to power ahead.
|Michaels hack hit 3 million|
|GM's recalled Cobalt was a failure from the start|
|Detroit pension cuts hit civilian workers hardest|
|Obama would cut deficits by another $1 trillion|
|Judge won't force GM owners to 'park' cars|