The largest Brazilian PC and mobile manufacturer Positivo has posted negative financial results for 2015, caused by dollar fluctuations and low market demand.
The firm posted net revenues of R$1.84bn ($506m) for 2015, a 20 percent drop in relation to 2014.
According to the company, the current financial crisis in Brazil has cause a bigger impact to its financial performance than it was expected. In a statement, Positivo then used IDC numbers to illustrate the market decline.
The analyst firm had predicted that the consumer market would grow by 5 percent and that corporate demand would see a 4 percent uplift. But the reality turned out to be a lot worse, with decline of 39 percent and 30 percent for the two segments respectively.
As well as the dollar hike in relation to the local currency - which affects local manufacturers since about 90 percent of production cost is impacted by dollar fluctuations - Positivo faced the issue of high stock levels that the company planned for the expected demand and were not sold. This has prompted the sale of products at a discount at the end of last year, which therefore reduced the firm's profit margins.
According to the manufacturer, the idea for 2016 is to keep stock at a level that is more realistic considering market trends. The expectation is now a market decline of 18 percent and 12 percent for PCs and smartphones respectively.
As if the negative financial results were not enough, Positivo also had to deal with the loss of market leadership to Dell last year, who announced last year that it held the number one spot in PC sales in Brazil.
As for positive news, Positivo mentioned a 127 percent uplift in smartphone sales for last year. The company has also been placing its bets on entry-level smartphones as well as feature phones, aimed at users with more basic needs and want to spend less.