The bookies can battle it out between Leadsom and May. Jeremy Corbyn can flip all the Labour tables he wants. And the Liberal Dems… well, never mind them. But until the political fallout from the public’s decision to exit the European Union has been actualized, it seems that companies will be riding the flux of uncertainty in the meantime.
On a small scale, OnePlus has upped the price of its latest mobile flagship by £20. Larger companies like Samsung, LG and Acer are pulling administrative teeth on their UK operations. Lenovo, though, with its precarious financial situation, has plans to raise product price tags and cut jobs.
CFO Wai Ming Wong spoke to investors and reporters at its annual general meeting and laid out an open table of cut-outs.
“I won’t exactly want to nail down to something,” Wong said. “If you were to cut costs, is it really headcount that’s the only area?”
PCs might be the biggest piece of Lenovo’s profit pie, but it does have its own mobile products as well as its subsidiary Motorola’s to consider, especially when most of them are targeting the mid-range market, a tender set of buyers indeed. With the city foretelling another recession for the island nation, a price hike on a person’s next essential phone is not what tightly-strung wallets need.
“To the extent that we need to pass things on to the customer, we will,” Wong continued. “Rather than just increasing the price to pass the costs to customers, we want to see other ways to generate efficiencies and grow the business. So I wouldn’t say just increasing the price is the only way to deal with this situation.”
Lenovo CEO Yang Yuanqing held back on options on the table to point out how the company is treading through Latin America — a market with many countries going through their own currency crises and not just the UK’s Pound.
“We can use our efficency to digest it. Sometimes we’ll increase our prices, and we believe we can manage it well and there shouldn’t be any major impacts on Lenovo,” Yang said through a translator.