NEW YORK (TheStreet) -- Lenovo Group (LNVGY) CEO Yang Yuanqing said the era of "hypergrowth" is over in China's smartphone market, after the company reported its slowest sales growth in six quarters, according to Bloomberg.
Yang has expanded in computer servers and mobile phones, including the $2.91 billion purchase of Motorola Mobility, to help combat a shrinking personal-computer market, Bloomberg noted.
Growth in China is slowing amid intensifying competition from local smartphone producers, including Xiaomi Corp., which surpassed Lenovo and became the third-biggest global vendor in the quarter ending in September.
"The industry is changing from in the past, when China grew much faster than the rest of the world," Yang said in an interview with Bloomberg. "The market is changing and China will not see further hypergrowth."
Lenovo's sales in the quarter were $10.5 billion, compared with the $11.3 billion average of 16 analyst estimates compiled by Bloomberg.
Second-quarter net income was up 19% to $262.1 million, beating the $259.8 million average of 12 analyst estimates compiled by Bloomberg, as Yang took advantage of Lenovo's expanding scale to boost profit at more than twice the pace of sales.
Shares of Lenovo Group fell 5.68% to close at $27.90 yesterday.