World's largest PC maker, Lenovo, is in for a bumpy ride. Lenovo Group Ltd. saw a 67% decline in their October-December quarterly earnings, with 18% of their revenue coming from its smartphones.
The Chinese electronics giant also reported an operating loss of US$112 million in the same quarter, which was roughly the same amount compared to the previous quarter, according to Reuters.
"I cannot say I am 100% satisfied (with the Motorola integration) ... but it is within my expectations," said CEO Yang Yuanqing.
Yang also told Bloomberg that they will "start from scratch and rebuild" their China business with a stronger team and better business model. Earlier this month, Lenovo hired Jaden Jiang, ex-Samsung executive, to be in charge of Lenovo's mobile strategy within China.
Despite the numbers, Lenovo's handset shipments rose by 7% in the same quarter, making the firm confident of their recovery in the second-half of this fiscal year. These speculations are also backed by how Lenovo was leading China's smartphone market three years ago - up until they acquired Motorola's handset business, while rivals like Oppo and Huawei struck from below.
On the flip side, reports from IDC Research showed Lenovo's PC business taking the lead in spite of a 5.7% downturn in global PC sales, with HP tagging close behind in second place.