Lenovo Group Ltd. posted a surprise quarterly loss after losing its grip on the global personal computer market as its smartphone unit continues to bleed money.
The net loss of US$72 million in the three months ended June was its first in six quarters and compares with the prediction for $9.9 billion.
Lenovo has lost its position as the world's biggest PC maker as HP Inc. and Dell Inc. win back customers with new models.
The company's smartphone and server businesses, which were bulked up with multibillion dollar acquisitions, have struggled to make money with rising costs and aggressive pricing strategies from competitors.
"Since PC is the only profitable segment, these headwinds will hurt profitability," Kai Qian and Liping Zhao, analyst at China International Capital Corp., wrote in a report ahead of the earnings.
Chairman Yang Yuanqing is exploring ways to rejuvenate Lenovo's core PC business, including a potential tie up with Fujitsu Ltd. that he said last month is still under negotiation.
The company has reenlisted former mobile unit head Lieu Jun to oversee its China business and has joined with e commerce site JD.com in a bid to push its annual online revenue to 80 billion yuan ($12 billion) within three years.
While the 2005 acquisition of International Business Machines Corp.'s PC division paid off by lifting Lenovo closer to the top of the market, the 2014 purchases of IBM's low end server unit and Motorola Mobility haven't gone as smoothly.
Bloomberg/ Beijing
The net loss of US$72 million in the three months ended June was its first in six quarters and compares with the prediction for $9.9 billion.
Lenovo has lost its position as the world's biggest PC maker as HP Inc. and Dell Inc. win back customers with new models.
The company's smartphone and server businesses, which were bulked up with multibillion dollar acquisitions, have struggled to make money with rising costs and aggressive pricing strategies from competitors.
"Since PC is the only profitable segment, these headwinds will hurt profitability," Kai Qian and Liping Zhao, analyst at China International Capital Corp., wrote in a report ahead of the earnings.
Chairman Yang Yuanqing is exploring ways to rejuvenate Lenovo's core PC business, including a potential tie up with Fujitsu Ltd. that he said last month is still under negotiation.
The company has reenlisted former mobile unit head Lieu Jun to oversee its China business and has joined with e commerce site JD.com in a bid to push its annual online revenue to 80 billion yuan ($12 billion) within three years.
While the 2005 acquisition of International Business Machines Corp.'s PC division paid off by lifting Lenovo closer to the top of the market, the 2014 purchases of IBM's low end server unit and Motorola Mobility haven't gone as smoothly.
Bloomberg/ Beijing
Tidak ada komentar:
Posting Komentar