Hong Kong, Nov 3 (BUS): China’s Lenovo Group reported its first revenue decline in 10 quarters as the pandemic-fueled sales spurt ended, with sales particularly low in China as the COVID lockdown took a toll.
The world’s largest personal computer maker said total revenue for the July-September quarter was $17.09 billion, down 4% from the same quarter last year, but beating the average Refinitiv estimate of $16.74 billion from seven analysts. Reuters reported that this is the first decline since the March 2020 quarter.
Lenovo already saw first-quarter revenue growth stall at just 0.2%. Along with its second-quarter results, the company posted a 2% decline in the first half of the fiscal year.
Net income attributable to shareholders increased 6% to $541 million.
Lenovo’s struggle reflects a weak global PC market.
Global PC shipments fell 15% year-over-year in the third quarter, according to a report published by data company IDC last month.
The report also showed that Lenovo, HP, and Dell saw shipments decline year-over-year by 16%, 28%, and 21%, respectively. The Chinese company maintained its leadership in the global PC market with a 22.7% share. Lenovo did not provide shipping numbers.
In response, Lenovo has over the past several quarters been improving its non-PC businesses such as smartphones, servers, and IT services, which together now make up more than a third of its sales.
Chip maker Qualcomm expects a dip in sales as its forecast for holiday quarter revenue fell nearly $2 billion less than Wall Street estimates.
SM