Financial Result: Lenovo Group Recorded Lowest Revenue In Nine Quarters

Chinese Lenovo Group said it recorded smallest revenue growth in nine quarters, which clearly showed the post COVID-19 slow recovery rate suffered by organisations. Lenovo has been developing its non-personal computer businesses such as smartphones, servers, and IT services.

According to information from the company, Lenovo’s total revenue during the April-June quarter was $16.96 billion, up 0.2% from the same quarter a year ago though it was in line with an average Refinitiv estimate of $16.87 billion drawn from seven analysts. That was the smallest increase since the March 2020 quarter.

Net income attributable to shareholders for the quarter rose 11% to $516 million. Lenovo’s subdued business growth coincided with the global PC industry cooling after a pandemic-fuelled sales surge, prompting several companies from chipmakers to electronics manufacturers such as Intel (INTC.O) and Samsung (005930.KS) to warn of a sharp slowdown in demand.

Global shipments fell 11.1% in the past quarter from a year earlier, the largest year-over-year decline since the second quarter of 2013, according to research firm Counterpoint. Lenovo’s total PC shipments fell 12.7% to 17.4 million units largely due to weak consumer demand, Counterpoint said. However, the Chinese company maintained its leadership in the global PC market with a 24.4% share. Lenovo itself did not give shipment numbers.

Wai Ming Wong, chief financial officer of the Lenovo said in an earnings call that the company’s device business saw quarterly revenue decline 3% because of “the weak consumer PC demand and the COVID-led supply constraints. PC device businesses saw a 12% increase in revenue. Revenue from smartphone sales grew over 20% compared to the same period last year.”

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