(Corrects headline and first paragraph to show revenue growth
was the slowest in nine quarters, not eight quarters. Drops
redundant word in second paragraph)
HONG KONG, Aug 10 (Reuters) - Lenovo Group, the
world's biggest maker of personal computers, reported flat
revenue for the April to June quarter when many Chinese cities
were hit by COVID-19 lockdowns, marking its most subdued result
in nine quarters.
Total revenue during the period 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 period ending
in March 2020.
However, Lenovo has made big strides in expanding into other
higher-margin businesses such as server operation, information
technology services and mobile devices, with Lenovo's non-PC
business now accounting for 37% of the company's revenue. For
the quarter, net income attributable to shareholders rose 11% to
Yang Yuanqing, Lenovo's chairman and chief executive, said
the company is "diversifying from a pure PC business to a
company that offers a broad range of intelligent products and
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.
Counterpoint said Lenovos 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
Yang said that he expects this year's global PC shipments to
be between 300 million units and 310 million units. That would
be a near 10% dip from the figure of 341 million units shipped
last year reported by data firm Canalys.
But Yang said that supply chain shortages, which plagued
many hardware manufacturers earlier this year, have improved.
"In some areas we are still facing a shortage, particularly
in the data center business," he said, "But generally speaking,
I'm not seeing significant challenges in the second half of this
He also added that Lenovo has seen some price increases in
the semiconductor industry but the company would remain flexible
in dealing with price fluctuations around components.
Lenovo declined to comment on sales in Russia and the impact
the war in Ukraine has had on its business during the quarter.
Chinese media reported last month that Lenovo has listed job
posts to hire autonomous driving engineers. Yang declined to
comment the company's foray into the mobility business.
Lenovo's shares on the Hong Kong Stock Exchange were down
0.3% at HK$7.03 ($0.8956) while the broader Hang Seng was down
($1 = 7.8496 Hong Kong dollars)
(Reporting by Josh Ye; Editing By Tom Hogue, Edwina Gibbs and