China’s Lenovo Group revealed its first revenue loss in 10 quarters, with sales declining particularly in China amid the country’s strict coronavirus (COVID-19) measures. This comes as the pandemic-fueled computer sales boom comes to an end.
Lenovo on Thursday reported that overall revenue for the July-September quarter was $17.09 billion, down 4% from the same period a year earlier.
However, it is higher than the $16.74 billion average Refinitiv estimate derived from seven analysts. Since the quarter ending in March 2020, that was the first decline.
With a growth rate of just 0.2%, Lenovo’s first-quarter revenue growth had already stalled. The business announced a 2% decline for the first half of its fiscal year in addition to its results for the second quarter.
According to a report released last month by data company IDC, the troubles of Lenovo are a reflection of a declining global PC market. In the third quarter, global shipments of PCs decreased 15% year over year.
However, the business continues to grow its non-PC business and is on a path to improved profits. For the quarter, net income attributable to shareholders increased by 6% to $541 million.
(With inputs from agencies)
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