Weak smart­phone sales hurt Len­ovo

China Daily (Canada) - - NEWSCAPSULE -

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)

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