Lenovo’s Money-Losing Smartphone Business Turns Focus Home to China

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Anniek Bao / Nov 05, 2020 07:05 PM / Business & Tech

Lenovo’s long-ailing smartphone unit hopes to pare its losses by bringing business closer to home.

The legacy electronics-maker is targeting higher-end Chinese consumers in the business and gaming segments, as its executives bet on the country’s consumption upgrade trend.

The unit has not turned an annual profit since it bought Motorola in 2014, and has struggled to integrate the American device maker’s assets and operations.

But it narrowed those losses by more than half in the third quarter of 2020, as a result of higher-priced handsets it has rolled out this year. Lenovo CEO Yang Yuanqing expected the smartphone business to turn a profit as early as next quarter.

Overall the company performed above expectations in the first half, making a record pre-tax profit of $470 million.

Read the full story on Caixin Global.

Contact reporter Anniek Bao (yunxinbao@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)

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