Lenovo Group Ltd announced that its third-quarter revenue soared 31 percent to $14.1 billion, astonishing investors. This is attributed mainly to its mobile arm's sales surging 109 percent to $3.39 billion, with more than $10  million coming from its Motorola handsets. The doubling of the mobile division's sales represent a quarter of the company's total sales.

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Recall, Lenovo acquired Motorola back in October for $2.9 billion. This was done  in an attempt to diversify its portfolio and counter the dwindling PC market, of which it is currently dominating.

This move, Chief Executive Yang Yuaqing believes, set the company apart from Chinese big shots Xiaomi Inc. and Huwawei Technologies Co. Ltd as these three battle for the third in the global mobile market of smartphones, next to Samsung Electronics Co. Ltd. and Apple Inc.

Lenovo shares on the Hong Kong Stock Exchange then opened 5.7 percenthigher at HK$10.76, but fell 0.36 percent on the broader Hang Seng index.

Lenovo sees itself on a different level in the market, calling itself a global brand versus competitors. For instance, Xiaomi leads Lenovo in China, however veers away from Western markets on worried over intellectual property issues.

To stay ahead, Yang sees Lenovo adopting rival Xiaomi's online distribution model by signing a deal with e-commerce site JD.com. Lenovo's new subsidiary will exclusively sell smartphones and wearables online. In particular, Lenovo plans to chiefly sell the Motorola handsets online.

Meanwhile, Lenovo's net profit fell to $253 million (-4.45% YoY) due to expanded expenses from two major acquisitions and IBM's low-end server unit. However, the printed revenues and net profit amounts surprised analysts that anticipated revenues of only $13.71 billion and net profits of $200 million.

Currently, Lenovo continues to lead the PC market with a 20 percent share, with PC sales amounting to $9.15 billion. Shipments climbed 5% as the broader industry fell 3 percent.

TagsThird quarter, Base Expectations