Lenovo Group Ltd, the world's No 2 PC maker by sales, posted a 30 percent rise in quarterly net profit, beating analysts' forecasts, though it logged its slowest growth in 1-1/2 years mainly due to lacklustre demand in some emerging markets and North America.
The ThinkPad maker has been advancing on the global PC stage due to aggressive pricing, overseas acquisitions and a fast-growing home market, but rapid gains in market share have come at the expense of thin profit margins.
Lenovo also faces slowing growth in the market for personal computers and tough competition from the likes of Apple Inc and Samsung Electronics Co Ltd in the fast-growing tablet PC and smartphone space.
"Although challenges to world-wide PC demand remain largely due to weakening economic condition, Lenovo remains both optimistic about the future of the PC market and committed to innovation," Lenovo said in a statement.
Lenovo, which ranks behind Hewlett Packard Co in PC sales, posted a net profit of $141.4 million for its April-June first quarter, up from $108.8 million from a year earlier, it said in a statement on the Hong Kong stock exchange on August 16.
The net profit growth was the slowest since the third quarter of fiscal 2010/2011, when the pace was about 25 percent, based on previously announced data.