Lenovo experiences record loss of $714 million as of Q2 FY2015/16

Lenovo experiences record loss of $714 million as of Q2 FY2015/16
Lenovo experiences record loss of $714 million as of Q2 FY2015/16
This is the largest quarterly loss for the Chinese company with much of the blame towards restructuring, takeovers, and slowing smartphone sales.

Lenovo has slipped deep into the red as of its second quarter for the fiscal 2015/2016 year. The Chinese company has announed a loss of $714 million USD during the three-month period ending September 30, 2015. This is compared to a profit of $365 million during the same quarter a year earlier. Nonetheless, revenue is up 16 percent from $10.475 billion to $12.15 billion.

Reasons for the record loss include the acquisition of the IBM System X Server division and Motorola. The recent restructuring within the company is also seen as a contributing factor. Lenovo had to write off $324 million worth of unsold smartphones as well.

The Lenovo PC Business Group (PCG) reported sales of approximately 15 million PCs and Windows tablets during the second quarter, down from 6.6 percent the previous quarter. Meanwhile, its Mobile Business Group (MBG) including Motorola smartphones, smart TVs, and Android tablets reported an overall increase in sales of 11 percent to 18.8 million units.

Lenovo recently launched its Yoga 900 and Yoga 700 series of notebooks in time for the Holidays. Its P50 and P70 workstations are expected to launch soon as well.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2015 11 > Lenovo experiences record loss of $714 million as of Q2 FY2015/16
Ronald Tiefenthäler/ Allen Ngo, 2015-11-13 (Update: 2015-11-13)
Allen Ngo
Allen Ngo - US Editor in Chief
After graduating with a B.S. in environmental hydrodynamics from the University of California, I studied reactor physics to become licensed by the U.S. NRC to operate nuclear reactors. There's a striking level of appreciation you gain for everyday consumer electronics after working with modern nuclear reactivity systems astonishingly powered by computers from the 80s. When I'm not managing day-to-day activities and US review articles on Notebookcheck, you can catch me following the eSports scene and the latest gaming news.