Lenovo Group Ltd's first quarter results beat market estimates on Thursday as its net profit rose by a whopping 64 percent on the back of impressive PC sales, Reuters reported.

Lenovo, the world's largest PC maker, said on Thursday that its net profit for the first quarter grew to $173 million from $105 million in the same period a year earlier. This was higher than the $130.1 million that most analysts had predicted in Thomson Reuters SmartEstimates.         

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However, the company's revenue declined by six percent to $10.05 billion from the previous year, as against $9.63 billion predicated by most analysts.            

Lenovo's strategy to focus on the personal computers business market paid off as it managed to consolidate its hold on the slowing PC market. The company's PC shipments declined by two percent on a yearly basis, as against four percent in the border industry.

"The PC market performed slightly better than expected due to stronger performance in mature markets," Lenovo's chairman and chief executive officer Yang Yuanqing said in a stock exchange statement. "Competition in the China smartphone market remained very keen while demand remained soft due to the slow economy."   

Lenovo is facing intense pressure in China's burgeoning smartphone market. The Chinese smartphone market is still the world's largest smartphone market, but the recent economic slowdown has taken a toll on the market.

Like its peers, Lenovo has been diversifying away from low-margin devices in China as it has witnessed intense competition over the years. Analysts say that the company needs to formulate a solid strategy to sustain itself in the highly competitive Chinese smartphone market.     

According to data by TrendForce, Lenovo had a share of merely 4.5 percent in the global smartphone market in April-June, which is far behind Samsung's 24 percent and Apple's 15 percent market share.

TagsLenovo, Lenovo China, china, Lenovo News