Double damage

16 February 2017 By Robyn Mak Follow @mak_robyn

The PC-maker is still struggling to turn around Motorola’s mobile business, bought in 2014. Now the purchase of IBM’s server unit looks unwise too. Lenovo was once the best example of a Chinese firm growing via foreign deals – but rebuilding that reputation will be very hard.

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Lenovo Group, the world's largest personal-computer maker, on Feb. 16 reported revenue of $12.2 billion in the three months to end-December, down 6 percent year on year.

Net profit fell 67 percent to $98 million. On average, analysts polled by Thomson Reuters had expected $160 million.

The company said "component supply constraints", and a challenging macroeconomic environment, were both partly to blame.

Lenovo's Hong Kong-listed shares fell 5.7 percent to HK$4.93 by early afternoon in Hong Kong.

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