When the chips are down

“We have never seen this situation in the past”

­­Yang Yuanqing

A supply squeeze in memory chips that has lasted more than a year is “unprecedented”, says Lenovo’s boss Yang Yuanqing. He noted that it had hurt profitability at the PC and smartphone maker leading to a first quarter loss of $72 million versus a profit of $173 million in the same period last year (revenue was little changed). Lenovo has also lost its number one spot in PC sales to HP. Samsung has been the big beneficiary of tight chip supply.

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