Lenovo has been slapped with a $714 million (£470m) net loss in its second quarter, but has said that a buoyant market for its smartphones in markets such as Russia and India have helped the Chinese giant to grow stronger.
Executives said that the colossal loss can be pinned on significant restructuring in the company, as Lenovo trims down its global expenses and continues to integrate the Systems x server business acquired from IBM.
But in the end, Lenovo’s revenue was up 16 percent year-over year to $12.2 billion (£8bn) as its global PC market share hit a record high for the company at 21.2 percent.
Waning sales in its home market of China were balanced by success in other regions. A 12 percent sales slump in China was offset by a 99 percent year-over-year growth rate in India where the company considerably ramped up its smartphone sales efforts.
Lenovo CEO Yuanqing Yang said that his company acted swiftly to address challenges.
“Now, not only are we building a more competitive business model, but we are growing,” Yang said.
In Lenovo’s enterprise business, the company managed to grow its revenue for the first time since its 2014 acquistion of IBM’s System x server business.
“Digesting acquisitions and making transformations take time, but I am greatly encouraged by our strong results, and confident in both out near and long-term future,” said Yang.
In August, Yang cut 5 percent of Lenovo’s total workforce, which seems to have paid off. The company’s total profit for its second quarter grew 8 percent year-over-year.
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