Lenovo about to turn profit from smartphone business

Lenovo Group Ltd's smartphone business in China is about to turn its first profit, enabling the company to expand margins while funding a handset push into emerging markets, Chief Executive Officer Yang Yuanqing said.

"Very soon you will see we'll start to make money in the China smartphone area," Yang said in an interview in Beijing.

Lenovo shares surged 36 percent in Hong Kong last year as it added market share to become the world's biggest vendor of personal computers and China's second-largest seller of smartphones.