PC maker Lenovo has reported losses in the US, at the same time that its growing above the industry average in other regions.
Lenovo had hoped that buying IBM 's hardware division last year would give the company benefits in the US and European markets, but this hasn't been the case, according to its fourth quarter results . In the US it even lost money after sales declined.
Lenovo's worldwide revenue for the fourth quarter of 2006 was $4 billion, about the same as the previous year, IT News reported. Profit was up to $64 million from $47 million a year earlier. Worldwide shipments grew by 8 per cent, which is above the industry's average.
But the US has been a 'problem market', Mary Ma, Lenovo's chief financial officer, said. US sales were down to $1.42 billion from $1.147 billion in the same time the previous year. Profit was down $3 million, compared to the $25 million it made a year earlier.
Several US partners have recently commented that Lenovo is losing its focus in the US market. The general view was that the company's expansion in retail outlets and web sales last year may have watered down the attention it paid to working with hardware and software resellers, according to IT News.
The US president of Lenovo, Scott Smith, left the company last week to 'pursue other interests'.