Lenovo plummets to 5-month low after Apple unveils new iPhone 6, iPhone Plus

“Lenovo Group Ltd. fell the most in seven months in Hong Kong trading amid concern Apple Inc.’s new iPhones with larger screens will crimp growth in its smartphones business,” Lulu Yilun Chen reports for Bloomberg News. “The stock dropped 4.2 percent to HK$11.88 at the close of trade, the biggest decline since Feb. 20. Apple this week announced iPhones with screens of 4.7 inches and 5.5 inches.”

“Lenovo, the world’s fourth-largest smartphone maker, is paying $2.9 billion for Google Inc.’s Motorola Mobility to help it fight Apple and Samsung Electronics Co. in the $338 billion global market. New iPhones may attract premium consumers while Lenovo’s shift to Motorola may boost its focus on cheaper devices and cause thinner profit margins, said Alex Ng, a Hong Kong-based analyst at China Merchants Securities Co. by phone,” Chen reports. “‘People may worry that the competition in this market may intensify after the iPhone 6 launch,’ said Ng.”

Chen reports, “Lenovo Chairman Yang Yuanqing cut his stake in the company to 7.43 percent on Sept. 5, down from 7.63 percent on Sept. 3, according to filings to the Hong Kong stock exchange published yesterday.”

Read more in the full article here.

MacDailyNews Take: Collateral damage. Sleep tight, iPhone wannabe peddlers.

8 Comments

  1. With Motorola being boxed up and shipped to China, Apple is like the only American company making phones. And I believe Timex got bought out by some foreign conglomerate (as was Hamilton long ago), so they’ll be one of very few American companies making watches soon.

      1. Google sunk billions and billions into building that factory.

        There goes another few thousand GOOG investors who won’t be retiring early. It must suck to know your hard earned cash is being blown around so recklessly.

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