Weak smartphone sales hurt Lenovo
Lenovo Group Ltd’s sales are being hurt by slowing smartphone demand in China.
Lenovo reported third-quarter revenue growth that fell below market expectations, sending down its share price and clouding expectations for the future profitability of the world’s largest personal computer maker.
Global revenue was up 7.2 percent to $10.5 billion, the smallest increase in at least six quarters.
Quarterly setbacks did not hurt Lenovo Chairman and Chief Executive Yang Yuanqing’s attempt to build the mobile device segment into a new cash cow to replace the PC business, which has provided a decade of profits.
“We will replicate our success in PCs by outgrowing the market to challenge the top two. Mobile and enterprise businesses are now our new growth engines, and over time, like PCs, they will become our profit pool as well,” Yang said. (Photo 1)