China’s Lenovo posts first income drop in 10 quarters as COVID lockdowns weigh By Reuters

By Josh Ye

HONG KONG (Reuters) -China’s Lenovo Group (OTC:) reported its first income decline in 10 quarters as a pandemic-fuelled gross sales growth involves an finish, with gross sales particularly falling in China as COVID lockdowns took a toll.

The world’s largest maker of private computer systems mentioned on Thursday complete income in the course of the July-September quarter was $17.09 billion, down 4% from the identical quarter a 12 months in the past, however coming above a median Refinitiv estimate of $16.74 billion drawn from seven analysts. That was the primary decline because the March 2020 quarter.

Lenovo had already seen development for its first-quarter income grind to a halt, at solely 0.2%. Along with its second-quarter end result, the corporate reported a 2% decline for its fiscal first half.

Internet earnings attributable to shareholders for the quarter rose 6% to $541 million.

Lenovo’s struggles replicate a weakening marketplace for PCs globally. World PC shipments declined 15% year-over-year within the third quarter, in line with a report printed by information agency IDC final month.

The report additionally confirmed that Lenovo, HP (NYSE:), and Dell noticed year-over-year shipments fall by 16%, 28% and 21%, respectively. The Chinese language firm maintained its management within the world PC market with a 22.7% share. Lenovo didn’t give cargo numbers.

In response, Lenovo has been working over the previous a number of quarters to enhance its non-PC companies equivalent to smartphones, servers and data know-how providers, which collectively now make up greater than a 3rd of its gross sales.

Chipmaker Qualcomm (NASDAQ:) expects a stoop in gross sales as its forecast for holiday-quarter income fell about $2 billion wanting Wall Road estimates.