Thursday, May 28, 2009
Lenovo's continued slide
Lenovo's most recent annual financial results are not pretty. The firm lost $268 million over its financial year that ended March 31. With Liu Chuanzhi back in charge, one might think the firm will turn around. That's highly unlikely. Lenovo's reliance on the Chinese market and Chinese government procurement has made it perfectly unsuitable to compete against the big boys outside of its home turf (it even racked up losses in the Asia-Pacific region ex. China). The current strategy seems to be a further retreat from the global marketplace. This move may curb losses in the short term, but will do little to push Lenovo to upgrade its capabilities.