April 04, 2008, 10:17 AM — Lenovo Group completed the sale of its handset unit to a group of investors
on March 31, the company said Thursday, marking the official end of its foray
into the mobile phone business.
Mobile phones were never much of a success for Lenovo, and executives ultimately
decided the business was a distraction from the company's core PC business.
The deal to dispose of the handset business, which Lenovo valued at US$100 million
in January, was approved by shareholders on March 17, clearing the last hurdle
to the sale.
Lenovo's handsets were sold primarily in China, accounting for $108 million
in revenue during the quarter ended on Dec. 31, 2007. That figure represented
2.4 percent of the company's total sales during that period. During the quarter,
the company reported that handset shipments declined by 31 percent compared
to the previous year.
Proceeds from the sale of the mobile phone unit will be reflected in Lenovo's
fiscal fourth-quarter and annual results. The company's fiscal year ended on