Lenovo has been expanding its portfolio for quite sometime PC, mobile phones and servers has seen the company grow but its the PC and laptop division that has made it the biggest in the world. Now the company is staring at loss in its overall profits seemingly attributed by the phone divisions that has under performed with over $300 million on unsold phones to be written off. In response 10 percent of the non manufacturing staffs are about to lose their jobs with the aim to save $650 million in the second half of this year.

However CEO, Yang Yuanqing has stood by his decision to buy Motorola and plans to restructure the mobile phone divisions, he ceded it will take a couple of quarters and cost the company $600 million to gain some footing in the extremely competitive environment. The PC business on the other hand reached record worldwide share of 20.6 percent and made Lenovo number 3 in the US market.