lenovo: China's Lenovo reports flat revenue, weakest in eight quarters
Total revenue came in at USD16.96 billion, in line with an average Refinitiv estimate of USD16.87 billion drawn from seven analysts. Net income attributable to shareholders rose 11% to USD516 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 manufacturing disruptions, according to a report by research firm Counterpoint.
It also coincided with the global PC industry coming off the pandemic-fuelled sales boom and the war in Ukraine, prompting several companies from chipmakers to electronics manufacturers such as Intel and Samsung 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 Counterpoint.
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Lenovo said in a statement that "the PC market is currently experiencing short-term challenges." Counterpoint said Lenovo's total PC shipments fell 12.7% to 17.4 million units largely due to weak consumer demand. However, Lenovo maintained its leadership in the global PC market with a 24.4% share.
But strong demand from companies to upgrade their digital capability has fuelled growth in Lenovo's server and other non-PC business. The company reported that revenue from its non-PC business contributed to 37% of its overall revenue during the quarter.
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