Beijing-based Lenovo has been hit with its biggest loss suffered in a quarter as the company struggles against aggressive competitors in China. The world's biggest manufacturer of personal computers has reported a net loss of $714 million during the July-September period, the biggest amount the company has lost in over six years, according to Business Insider.
Despite the staggering amount, the loss was widely expected, as Lenovo announced in August that it would book around $900 million in restructuring and smartphone inventory clearing costs. It also spent about $5 billion last year to acquire the Motorola smartphone business from Google, as well as IBM's x86 server unit, reported Market Watch.
Investors seem to be unfazed with the loss, as Lenovo's second quarter results were quite significant. The PC giant has reported $12.2 billion in revenue, signifying a 16 percent rise from the company's performance last year.
Apart from this, the Chinese computer giant has also projected that it will save $650 million in the second half of the year, as well as $1.35 billion next year. A series of planned job cuts, which will affect five percent of its workforce, is also set to decrease operating costs, according to Digital Trends.
With the projected figures in mind, Lenovo seems to be on track to fully recover. However, the company is facing a big challenge in the mobile industry, where it is faced with steep competition from other prominent brands such as Apple, Samsung, Huawei and Xiaomi.
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