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| Lenovo reports sharp profit drop and job cuts | |
| (about 4 hours later) | |
| Chinese computer and smartphone company Lenovo has reported quarterly results, missing expectations and announcing worldwide job cuts. | Chinese computer and smartphone company Lenovo has reported quarterly results, missing expectations and announcing worldwide job cuts. |
| The firm's net profit plunged by 51% compared to the same quarter last year to $105m (£67m). | The firm's net profit plunged by 51% compared to the same quarter last year to $105m (£67m). |
| Quarterly revenue, however, rose by 3%, still short of market expectations. | Quarterly revenue, however, rose by 3%, still short of market expectations. |
| The firm posted a steep decline in sales for its mobile division, reflecting intense international competition on the smartphone market. | The firm posted a steep decline in sales for its mobile division, reflecting intense international competition on the smartphone market. |
| Lenovo, the world's biggest PC-maker, said it plans to lay off around 10% of its worldwide non-manufacturing employees, about 3,200 jobs, as part of overall cost-cutting measures aimed at saving $650m in the remainder of 2015. | Lenovo, the world's biggest PC-maker, said it plans to lay off around 10% of its worldwide non-manufacturing employees, about 3,200 jobs, as part of overall cost-cutting measures aimed at saving $650m in the remainder of 2015. |
| Lagging smartphone sector | Lagging smartphone sector |
| Lenovo reported significant declines in its global computer and tablet sector, as well as increasing competition and slowing growth in the smartphone market. | Lenovo reported significant declines in its global computer and tablet sector, as well as increasing competition and slowing growth in the smartphone market. |
| Chief executive Yuanqing Yang said the company would also restructure its smartphone business amid the "toughest market environment in recent years". | Chief executive Yuanqing Yang said the company would also restructure its smartphone business amid the "toughest market environment in recent years". |
| The company last year bought the Motorola brand from Google for $2.9bn to boost its position on the market, citing "intensifying competition and long product development lifecycles" as particular challenges in the sector. | The company last year bought the Motorola brand from Google for $2.9bn to boost its position on the market, citing "intensifying competition and long product development lifecycles" as particular challenges in the sector. |
| Lenovo's mobile division saw a pre-tax loss of $292m in the three months to the end of June. | Lenovo's mobile division saw a pre-tax loss of $292m in the three months to the end of June. |
| According to Lenovo, its PC business reached a worldwide share of 20.6%, with a 13% share in the critical US market. | According to Lenovo, its PC business reached a worldwide share of 20.6%, with a 13% share in the critical US market. |