The Asian computer maker reported a 78 percent lower profit last quarter and said it expects to report a loss for the three months ending December 31.
"This is something they have to do. If they don't do it, the company will have a huge loss," said J.P. Morgan & Co. analyst Charles Guo. "We believed they had to do something drastic. This 11 percent is within our expectations."Source: AP
Lenovo has been hit especially hard by global turmoil because corporate customers that account for 60 to 70 percent of sales are slashing spending, Guo said.
"Overall, it will be quite difficult for Lenovo in the next nine to 12 months," he said.