©Reuters. FILE PHOTO: The Lenovo logo is seen in this illustration photo dated January 22, 2018. REUTERS/Thomas White/Illustration
By Josh Ye
HONG KONG (Reuters) – Lenovo Group (OTC:), the world’s largest maker of personal computers, reported flat sales for the April-June quarter, as many Chinese cities were hit by COVID-19 lockdowns, marking the most subdued result for eight quarters .
Total revenue came in at $16.96 billion, matching a median Refinitiv estimate of $16.87 billion drawn by seven analysts. Net income attributable to shareholders increased 11% to $516 million.
Lockdowns in China during the quarter dealt a blow to the PC supply chain, with major laptop manufacturing partners including Quanta, Compal and Wistron suffering significant production disruptions, according to a report by research firm Counterpoint. It also coincided with the global PC industry recovering from the pandemic-related sales boom and the war in Ukraine, prompting multiple companies from chipmakers to electronics manufacturers like Intel (NASDAQ:) and Samsung (KS:) to step forward to warn of a severe slowdown. According to Counterpoint, global shipments fell 11.1% year over year last quarter, the largest year-over-year decline since the second quarter of 2013.
Lenovo said in a statement that “the PC market is currently facing near-term challenges.” Counterpoint said Lenovo’s total PC shipments fell 12.7% to 17.4 million units, mainly due to weak consumer demand. However, Lenovo retained its leading position in the global PC market with a 24.4% share.
But strong demand from companies to improve their digital capabilities has fueled growth in Lenovo’s server and other non-PC businesses. The company reported revenue growth of 37% in its non-PC business for the quarter.
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