According to latest reports, Lenovo is set to miss its target to turnaround its smartphone business as the company recently posted quarterly loss.
While Lenovo’s Mobile Business Group currently accounts for over 16 percent of the company’s annual revenue, it has so far struggled to integrate the assets acquired from the deal that saw Lenovo purchasing Motorola Mobility from Google for $2.9 billion back in 2014. In the recently published quarterly report, the company revealed that the mobile division of the company has operating loss of over $92 million. However, the company noted that with right strategy, the mobile division can be profitable in the coming years.
Although Lenovo’s mobile division is currently struggling, the company saw increased revenue from PC and smart device business during last quarter. During the period, in addition to experiencing higher profit, the company also expanded in other emerging technologies such as AR and VR. As a result, Lenovo’s overall revenue during the quarter went up to $12.94 billion which is up from $12.17 billion from 2016.
Talking about company’s performance during last quarter, Chairman and CEO Yang Yuanqing told Reuters, “Lenovo is accelerating its transformation to become a world leader across every part of our business. We continue to see significant improvement and strong performance in some of the most exciting technology market sectors, smart devices and data center. We saw revenue, margins, profit, innovation, performance and customer experience all extend the momentum that developed during the prior quarter, and these results reaffirm the transformation strategy we are executing.”