Electronics Production |
Lenovo face fierce competition
The world's third-largest computer manufacturer, Chinese computer maker Lenovo which employs 450 workers at its newly-acquired former IBM plant in Greenock, United Kingdom, reported an unexpected decline in profits.
Lenovo reported a net profit of £11.6m for its fourth quarter to the end of March (£13.2m). Sales for the three-month period declined 6.4%. Lenovo currently faces fierce competition from Dell among others. The operation in Greenock, had previously been outsourced to Sanmina-Sci. More than 90% of Lenovo’s sales comes from China. British news paper The Herald reports.
On May 1, 2005, Lenovo completed its acquisition of IBM's Personal Computing Division, creating the third-largest PC company in the world. The new Lenovo is a global company with 19,000 employees, approximately 14 million units in annual volume and combined annual PC revenue of approximately US$13 billion (based on 2003 combined revenue for each company).
