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Lenovo revenue grows, but problems persist

China's largest PC maker sees surge in profits but loses market share to multinational companies.

Lenovo, the largest PC maker in China, saw its revenue and profits surge in the most recent quarter. Revenue rose to $754 million, compared with $685 million the year before, while net income rose to $43.2 million from $35.7 million. The rise came from a 14 percent increase in PC shipments and a 44 percent increase in notebook sales.

Still, the company has been losing market share to multinational companies like Dell and had to retrench from its international expansion plans. In 2002, when Lenovo was first testing the market, its overseas sales came to $147.5 million. In 2003, those sales dropped to under $40 million.

Wang Dan of ZDNet China reported from Beijing.