(Telecompaper) Lenovo reported revenues of USD 8.8 billion for its fiscal first quarter to June, up 10 percent from a year earlier. Its home market China accounted for 42 percent of revenue, growing 5.6 percent to USD 3.7 billion on strong demand for smartphones. Gross profit increased 14 percent year-over-year to USD 1.2 billion, giving a gross margin of 13.6 percent. Pretax profit grew 16 percent to USD 215 million, and EPS was up 23 percent to USD 174 million. The company shipped 12.6 million computers in the quarter, making it market leader for the first time. Lenovo said it was also the first quarter when its shipments of smartphones and tablets combined surpassed those of PCs. Revenues from mobile devices increased 105 percent year-over-year USD 1.2 billion, representing 14 percent of group revenue. Growth was strongest in China, where smartphone shipments increased by 121 percent, making Lenovo the second-largest vendor in China.