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Technology Stocks : Semi Equipment Analysis
SOXX 312.76+1.1%Dec 8 4:00 PM EST

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Donald Wennerstrom
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China's Lenovo warns of cost challenges as it sinks to Q1 loss
Sijia Jiang
August 17, 2017 / 8:41 PM / an hour ago

HONG KONG (Reuters) - Chinese personal computer maker Lenovo Group Ltd ( 0992.HK) warned of higher costs and margin pressure due to shortages of components like memory chips, as it posted its first quarterly loss in almost two years on Friday.
[....]

The outlook for the rest of the year was challenging as component shortages would dive costs higher, possibly forcing the company to raise its selling price to protect margins, executives said.

"Most of the component cost is stabilizing except memory ... and the price is still going up," Lenovo Chief Operating Officer Gianfranco Lanci said on an earnings call.

Memory prices rises would continue "at least until the end of the year", albeit at a slower rate than the past two quarters, he said, a product of exploding global demand for semiconductors.

more at reuters.com
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