While Lenovo is working hard to remain as relevant in the smartphone industry as it has in the PC one, things are not looking that simple for the hardware giant. Despite being one of the world’s largest companies, and having a huge presence in China, it incurred a $714 million loss. Also important to note is that its the company’s first loss in six years.
The loss was compounded with $300 million worth of unsold inventory, ongoing shift in company brass as well as the $2.9 billion buyout of Motorola from Google.
However, it still managed to increase year-on-year sales by 16 percent to $12.2 billion. Sales of smartphones also increased to 24.7 million, a 4x increase thanks to the Motorola deal.
Lenovo’s PC Sales
PC sales, a major factor in its earnings report, saw a decline of 17 percent over the same time last year. It is around $8.1 billion. Sales now amount to 262 million units per year. Finally, there was the $2.3 billion deal late last year to buy the server business from IBM, in the wake of a surge in demand from Chinese consumers.
Overall, the earnings report is still not as bad as was initially expected. Analysts predicted that Lenovo would lose $803 million. The company incurred $714 million in losses. Next year is expected to be better for Lenovo as the company has completed its transition phase and those high-profile acquisitions are expected to pay off. It also has plans to push itself deeper into the lucrative US market.
For the future, Lenovo plans to move forward with a major restructuring plan which will save it $650 million in the first year alone, with $1.35 billion the year later. The company may explore job layoffs to the tune of around 3200 employees or 5 percent of its total workforce.
Who the stupid told them to buy Motorola!
YOU and only YOU. they didn’t even new the earth, it only YOU who realized them that you are wrong number, otherwise everything was going fine.
WTF
Are you okay there, dude?
Google !!!
They just don’t only own moto they also own zuk.
I have heard that lenovo uses very low quality oarts for its laptops…. is that true?
No! My Lenovo laptop works way better than my brothers HP! Both are i5 and have almost same specs !
There phones r also gud, bt may b not promoted as much or may b a bit over priced
There phones are awesome! It’s the Motorola they bought causing this loss motorola was already going in loss and now loss shifted to Lenovo.
May b bt if they r blaming it publicly i dont c much improvment to this department any time soon
I have k3 note but it feels cheap. Same is true for a7000.
Cant dare to disagree to that fact!
Thanks bro
It depends on the model and series
Definitely not happy with Lenovo.
I used a T61 laptop for 3-4 years. It had multiple issues. a) heating/fan not working. b) Some not working. c) Screen going dead etc.
On the other hand, my hp has no issues after 2-1/2 years.
Was it refurbished? Or bought new?
Using lenovo G series laptop for 3 years now. very durable and solid product.
If they want profit then they can officially launch in pakistan with qmobile rate :p
why don’t they buy Qmobile also …………….. ;)
That would b worse than buying moto :p
The Motorola loss just shifted to them as they now own it.
Motorolas phones are actually pretty good, the new moto x style looks amazing and it runs near stock android and its also affordable.If only it was launched officially in pak
Mistake:
Acquisition of Nokia by Microsoft
And Motorola by Lenovo.
Also Lenovo didn’t advertise smartphones…
Lenovo advertise their smartphones But not like Qmobile and Yes, Nokia Acquisition was the worst move made by microsoft.
Blame Superfish.
It may be true for other markets but they are still charging more for per phone here in Pakistan. Lenovo A7000 in Pakistan cost nearly as much as k3 note in India and has less features than later.