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PC manufacturer: Lenovo shocked with quarterly loss

Friday, August 18th, 2017 | Gadgets

The strong competition in the PC market and persistent difficulties in the smartphone and server business have pushed the Chinese manufacturer Lenovo surprisingly into the red numbers. In the first quarter of April to June, the world's largest PC producer drove a loss of 72 million US dollars in stagnating sales, as Lenovo communicated on Friday.

          A year earlier, the company had earned 173 million dollars. It was the first shortfall after six quarters with profits. Analysts also expected a surplus this time. On the Hong Kong stock exchange, the share price fell by more than 4 percent to the lowest level in more than one year. "The sharp rise in our costs has put us in all three divisions," said Group CEO Yang Yuanqing. After prominent takeovers, Lenovo has not managed its smartphone and server business so far. The company bought Google Motorola's mobile phone manufacturer Motorola 2011 and IBM part of the server party. However, Lenovo's smartphone business continues to burn money. Difficulties in delivery, rising costs and an aggressive competition make the group hard in the server business. In addition, Lenovo has also lost its footing in the PC core business. The former global number one lost its top position and was eventually overtaken by the US competitor HP. Lenovo now plans to invest 1.2 billion dollars in new technologies like artificial intelligence, the Internet of Things and virtual realities in the coming years. In the mobile phone division, Lenovo continues to rely on the Motorola brand. dpa

          
           

          
          
                
                    
          
            
                

                
        

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