Lenovo Group of china has reported its first decrease in 10 quarter after the rise of computers’ sales boom is about to end with fall in China which caused the COVID lockdown took toll.
The biggest PC maker’s revenue is $17.09 billion in the month of July-September quarter which is down of four percent in comparison of same quarter of previous year.
Lenovo had already confirmed first-quarter revenue growth of just 0.2%. Along with second-quarter earnings, the company reported a 2% decline in the first half.
Lenovo’s problem reflects the downturn in his PC market worldwide. According to a report released last month by data firm IDC, his global PC shipments in the third quarter fell 15% year-over-year.
However, the company continues to improve its bottom line by expanding his non-PC business. Net profit attributable to shareholders for the quarter increased by 6% to $541 million (approximately Rs 450 billion).
China Covid containment measures have damaged the company Lenovo said. Revenues from China were down 12% compared to the same quarter last year.
Lenovo chairman and CEO Yang Yuanqing said in an interview with Reuters that China’s sales are growing in contrast to many other markets around the world, where consumer demand is declining.
The decline was likely due to weaker demand from corporate customers than from consumers, he said.
Chinese are better consumer is better than the trader,” he said. not affected by the battle with many factories still do good, he said.
According to the IDC report, shipments from Lenovo, HP, and Dell decreased 16%, 28%, and 21%, respectively, year over year.
The Chinese company maintains its leading position in the global PC market with a 22.7% share. Lenovo does not provide tracking numbers.
Qualcomm, the chip maker, expects sales to fall as its Christmas quarter earnings forecast is about $2 billion (roughly 16.6 trillion rupees) lower than Wall Street forecasts.
Lenovo has been working in recent quarters to improve his non-PC business, including smartphones, servers and information technology services. They currently account for about 37% of revenue.
Yang said he expects his non-PC business at Lenovo to account for more than half of the company’s revenue in the future.
When asked about the US government’s recent restrictions on semiconductor exports to China, Yang said the impact on Lenovo’s business would be limited.
“This only affects high-performance computers. But that business is a tiny fraction of our total revenue,” he said.
Regarding semiconductor supply, Yang said he believes the supply of chips for PCs and smartphones is normal, but the infrastructure business is still facing bottlenecks.
