China's Lenovo reports flat revenue, weakest in eight quarters

By Josh Ye

HONGKONG – Lenovo Group, the world’s largest maker of non-public computer systems, reported flat income for the April-June quarter when many Chinese language cities have been hit by COVID-19 lockdowns, marking its most subdued lead to eight quarters.

Complete income got here in at $16.96 billion, consistent with a mean Refinitiv estimate of $16.87 billion drawn from seven analysts. Web revenue attributable to shareholders rose 11% to $516 million.

Lockdowns in China throughout the quarter dealt a blow to the PC provide chain, with main laptop computer manufacturing companions together with Quanta, Compal and Wistron struggling vital manufacturing disruptions, in line with a report by analysis agency Counterpoint. It additionally coincided with the worldwide PC business coming off the pandemic-fuelled gross sales increase and the conflict in Ukraine, prompting a number of corporations from chipmakers to electronics producers resembling Intel and Samsung to warn of a pointy slowdown in demand. World shipments fell 11.1% up to now quarter from a yr earlier, the most important year-over-year decline because the second quarter of 2013, in line with Counterpoint.

Lenovo stated in an announcement that “the PC market is at the moment experiencing short-term challenges.” Counterpoint stated Lenovo’s complete PC shipments fell 12.7% to 17.4 million models largely because of weak shopper demand. Nevertheless, Lenovo maintained its management within the international PC market with a 24.4% share.

However robust demand from corporations to improve their digital functionality has fuelled development in Lenovo’s server and different non-PC enterprise. The corporate reported 37% income development in its non-PC enterprise throughout the quarter.