Lenovo’s quarterly profit fell by 66% – Kommersant
[ad_1]
The revenue of the Chinese company Lenovo in the first quarter of fiscal year 2023-2024, which ended in June, decreased (.pdf) by 24%, to $12.9 billion. The company’s net profit fell by 66%, amounting to $177 million. The results were worse than analysts’ forecasts, so Lenovo’s shares after the publication of financial statements fell by 6%.
The decline in the company’s performance is primarily due to continued poor PC sales. The PC, Smartphones and Consumer Electronics division’s revenue fell 28% in the first quarter. Besides, sales of Lenovo in China decreased by 29%. Global PC sales have continued to decline for several quarters after a surge in demand during the pandemic. In May, Lenovo reported about the first drop in revenue for the year as a whole since 2019: it decreased by 14%.
However, the situation began to improve: according to the calculations of the research company Canalys, sales in the second quarter were only 11.5% lower than a year ago, against a decline of almost 30% in the first quarter. Lenovo also noted that the company’s PC sales business has stabilized and may begin to recover by the end of the year.
[ad_2]
Source link
