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