Lenovo Share Price Plunge on weak smartphone sales - Alldamoney

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Lenovo Share Price Plunge on weak smartphone sales

Lenovo over the past years is accustomed to good financial news, but the company’s newly released financial report shows that it's not immune to the tepid smartphone market. The tech giant reported a big drop in revenues and earnings that saw its Shares plunged at the financial market.

Lenovo’s Mobile Business Group (MBG) saw a massive 31 percent decline in smartphone sales in the last quarter of 2016. That decline shrank to 28 percent year-on-year in the second quarter. Currently, it’s down to 26 percent.

Years back, the company  was the number one smartphone maker in China, in mobile sales including tablets . But presently the company is well behind its competitors Oppo, Huawei and Vivo.
The company's present sales drop with its mobile division caused the company a loss of about $112 million, most especially on the Moto and Lenovo handsets.

The Beijing based company remains the world's largest PC maker, even as  its smartphone business continues to fizzle.The global PC market, according to Industrial reports faced five years of consecutive decline, although Lenovo’s PC division saw a 2 percent increase in revenue, its first increase in almost two years.

Lenovo still made profit from its PCs sales growth that continued to expand, most especially to businesses.
HP and Dell both US firms follow Lenovo as leaders in the world PC market and according to industry trackers  all three increased their share of the market in the final quarter of last year.

Lenovo is blaming component supply constraints, a weak macroeconomic environment and uncertain global market as the cause of its weak performance.

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