Lenovo is confident that its mobile division will be able to bounce back in the second quarter of its 2017 fiscal year, according to the company’s Chairman and Chief Executive Office Yang Yuanqing. The company posted a loss of $72 million during the first quarter of its current fiscal year, the first in almost two years.
The company said that the loss was a reflection of the current state of the market, in which component shortages have driven up production costs and consequently lowering profit margins. Specifically, the shortage in the memory chip market is one of the main reasons for the company’s operating loss, a situation which has also affected other equipment manufacturers.
Lenovo plans to capitalize and put a larger focus on its Motorola Mobility brand moving forward to take advantage of the Moto brand more efficiently. Motorola is set to release a large slew of handsets this year that cover every price category and is set to perform extremely well in the comping months.