Lenovo turnaround will take more than cost-cutting

Discussion in 'other software & services' started by Daveski17, Aug 15, 2015.

  1. Daveski17

    Daveski17 Registered Member

    Joined:
    Nov 11, 2008
    Posts:
    8,028
    Location:
    Lloegyr
    Lenovo’s turnaround will take more than cost-cutting. The PC-to-smartphone maker will slash $1.35 billion from annual expenses after earnings halved in the second quarter. Restructuring may halt losses at the Motorola handset unit Lenovo bought last year. But any return to growth depends on a demand pickup.

    Falling PC sales and slowing demand in smartphones have hit the Shenzhen-based tech group particularly hard: revenue in the three months to June grew just 3 percent year on year to $10.7 billion, missing expectations of analysts polled by Thomson Reuters. Despite splashing out $2.9 billion on Motorola’s handset division last year, losses in the group’s mobile division widened to $292 million in the quarter, from $218 million in the preceding three months. ~ Reuters UK op cit

    http://blogs.reuters.com/breakingvi...-turnaround-will-take-more-than-cost-cutting/

    I think this is the real explanation for any monetising schemes (SuperFish) that Lenovo has attempted recently. There has been a fundamental change in market dynamics and they're desperately trying to stay solvent.
     
Loading...