Lenovo runs at a loss for the first time in 6 years

Lenovo have just released their Q2 financial reports for 2015, and here are the major highlight of the report:

lenovo-laptop

  • Revenue increased by 16% to US$12.2 billion.
  • Lenovo grew its PC market share for record high 21.2% share.
  • Lenovo is successfully restructuring, and is on track to deliver US$ 650 million in the second half of the year and US$ 1.35 billion annually.
  • Lenovo incurred US$599 million in restructuring costs and a US$324 million one-time charge to clear smartphone inventory in Q2.

For the first time in six years, the company recorded a $714 million net loss. This is attributed to the acquisition of Motorola and unsold phone stock. The company also announced that smartphone sales outside of China jumped from 19% to 70%, and total mobile sales increased by a 11% over last year to $2.7 billion.

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One comment

  1. They ain’t doing bad. Their lost even sound like investment (restructuring) as they are seriously making headway into Africa

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