On 21st, May, Lenovo Group, Chinese laptop maker, posted a second consecutive quarterly loss due to restructuring costs and flat worldwide PC sales, dragging its whole year earnings into the red.
“keeping the dominant position in China will help it get through the current difficult period,” said by the Lenovo Group.
Liu Chuanzhi, Lenovo Chairman, said “The past two quarters have been a particularly challenging time in our industry worldwide, and we took some significant steps to get our business back on the right path.” But he reaffirmed that Lenovo “can make significant progress” against competitors a year later by focusing on emerging markets.
“The company’s commercial business, mainly the expansive ThinkPad and ThinkCentre products that it acquired from IBM in 2005, have been severely impacted as large corporate companies reduce IT investments amid the financial crisis, China is Lenovo’s most important market to tide over the current downturn.” chief executive of Lenovo Yang Yuanqing said. According to the company, Lenovo’s shipments in Greater China increased 4.4 percent in the quarter. Its market share increased 1.1 point to 26.7 percent.
Lenovo overhauled its business organization earlier this year to divide its regional operations into two business groups, with one catering to developed markets and the other, emerging markets. The company has also set up two product groups based on its “Think” and “Idea” branded products, which mainly serve corporate customers and consumers, respectively.
This news is from China electronics manufacturer.