Brexit, the colloquial name given to the UK's decision to exit the European Union, has had a tremendous impact on economies and businesses around the world. The technology industry has been unaffected, with Microsoft, Dell, and many other tech leaders adjusting various business plans and strategies to account for Brexit's economic impact.
Now, as Bloomberg reports, Lenovo is the latest company making plans to take Brexit under consideration. The EU is a large market for Lenovo, representing roughly 20% of the company's earnings, and so it's no surprise that Lenovo will be taking a hard look at the potential influence an independent UK and lessened EU will have on its business.
According to Lenovo Chief Financial Officer Wai Ming Wong in response to questions about potential job cuts and price increases:
To the extent that we need to pass things on to the customer, we will.
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.
As a global company, Lenovo is well-versed in currency changes and economic fluctuations, and so Brexit should have the most profound impact on the company's bottom line and future strategies. But it's certainly something Lenovo's leadership will need to keep in mind as it moves forward.
As Lenovo Chairman and Chief Executive Office Yang Yuanging said:
“We have a whole set of tools to manage it,” he said through a translator. “We can use our efficiency 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.”
We'll be keeping our eye on continued developments in the technology industry following Brexit. Let us know in the comments if you see any additional impact on the technology industry.