Lenovo rues virus disruption to mobile - Mobile World Live

Lenovo rues virus disruption to mobile

20 MAY 2020

Lenovo lamented the impact of the Covid-19 (coronavirus) pandemic on its mobile business in its fiscal Q4 (to end-March), as it was forced to shutdown its primary global factory in the Chinese city of Wuhan which contributed to a sharp revenue dip.

In an earnings statement the company said its mobile division was “on target for a breakthrough year” before the pandemic struck and caused the factory closure.

Mobile Business Group revenue declined 46.7 per cent year-on-year to $824 million in fiscal Q4, and slipped to a pretax loss of $60 million from a $4 million profit “after aggressive expense actions mitigated part of the negative impact from less supply”.

Despite the Wuhan factory shutdown, Lenovo said it leveraged its global manufacturing footprint and produced 6 million phones during the quarter.

At group level, revenue dipped to $10.6 billion from $11.7 billion, due to industry-wide supply disruption related to Covid-19, while net income dropped from $118 million to $43 million.

Revenue from the Intelligent Devices Group, which includes mobile, PC and smart devices, declined 4.4 per cent to $8.5 billion, with Data Centre Business Group sales down 3 per cent to $1.2 billion.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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