Latest in Android

Image credit:

Even the world's no.1 PC maker finds selling smartphones tough

Share
Tweet
Share

Sponsored Links

Lenovo is the biggest PC maker in the world, but smartphones remain a challenge. The company's mobile arm announced a pre-tax loss of $292 million for the three months ending in June: Motorola phones shipped stood at 5.9 million, down just less than a third from last year. The company now plans to cut 10 percent of its non-manufacturing jobs (roughly 3,200 people), aiming to save around $650 million in the second half of 2015. It's also writing down $300 million in unsold phones. The company's total net profit dropped 51 percent year-on-year, down to $105 million.

Lenovo's chief exec, Yang Yuanqing, told Reuters that he stands by the acquisition of Motorola, which cost $2.91 billion in 2014. He added that restructuring Motorola and Lenovo's smartphone divisions will take two to three quarters. This looks likely to cost $600 million, due to the "toughest market environment in recent years" -- likely why the company is trying all sorts of gambits.

Source: Lenovo
Coverage: Reuters
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
Tweet
Share

Popular on Engadget

Test shows dark mode really can save battery life on OLED iPhones

Test shows dark mode really can save battery life on OLED iPhones

View
Los Angeles Fire Department wants to double its drone fleet

Los Angeles Fire Department wants to double its drone fleet

View
Sonar drone helps find a WWII Japanese aircraft carrier

Sonar drone helps find a WWII Japanese aircraft carrier

View
Next-gen hearing implants could overcome inner ear damage

Next-gen hearing implants could overcome inner ear damage

View
Amazon sellers are shipping long-expired food

Amazon sellers are shipping long-expired food

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr