Yes; it is a horrible bloodbath in mobile. HTC. BlackBerry. Microsoft Mobile. Sony. Samsung. LG. All of these brands are either making losses or experiencing a decline in profit margins.
And now, we have news that Lenovo, the fifth largest smartphone brand in the world, is laying off 3,200 staff after “a disappointing last quarter of business”. The brand will also write off $300 million in unsold smartphones.
In addition, Lenovo is restructuring its mobile business such that all smartphone design, development, and manufacturing will now be handled by its subsidiary, Motorola. In addition, the brand will be cutting down on number of models and instead produce “a more streamlined product portfolio with a reduced number of clearly differentiated models”.