HONG KONG: The Chinese tech group's revenue fell 8 pct to $13 bln in the fourth quarter as demand for PCs and smartphones slowed. Lenovo also faces fierce competition at home from the likes of Huawei and Xiaomi. Even though it is slashing costs, margins will remain under pressure.

Chinese PC and smartphone maker Lenovo on Feb. 3 reported revenue of $12.9 billion for the quarter ending December, a decrease of 8 percent year on year. Net income increased 14 percent from the same period last year to $294 million.

The company also said that it had achieved its goal of breakeven in its mobile business four to six quarters after the completion of its acquisition of Motorola in October 2014.

Shares of the Hong Kong-listed Lenovo were down by 10.2 percent to HK$6.61 by the market close on Feb. 3.

Copyright Reuters, 2016