Lenovo's CEO, Yuanqing Yang, expressed concern over the unpredictable nature of U.S. tax policy changes during a recent earnings call. He noted that while the company is prepared for tariffs, sudden shifts in policy, like the increase in tariffs by 25%, dramatically impacted their operational strategies, costing them an estimated $50 million to $60 million last quarter. Despite these challenges, Lenovo reported substantial growth in its revenue and income, attributing part of its resilience to a diversified manufacturing approach called 'China Plus' that mitigates risks associated with geopolitical changes.
CEO Yuanqing Yang emphasized the unpredictability of rapid changes in U.S. tax policies as a challenge for Lenovo, overshadowing worries about the tariffs themselves.
While tariffs initially impacted Lenovo’s performance significantly, the company still reported strong quarterly results with revenue growth of 23% and net income up 25%.
Lenovo's strategy, known as 'China Plus', involves manufacturing across multiple countries to adapt to customer needs and geopolitical conditions.
Despite the negative impacts of tariffs, Lenovo managed impressive revenue growth for the financial year, reaching $69 billion with a significant increase in net income.
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