The collapsed computer market collapsed Lenovo’s revenue by 24% in the last quarter
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The Chinese Lenovo Group reported financial performance in the last quarter of the 2022 calendar year (Q3 of the fiscal year). The company’s performance has been falling for the second quarter in a row, which is caused by a collapse in global demand for computers and smartphones – Lenovo’s revenue in the reporting period decreased by 24%.
Image Source: Lenovo
On Friday, February 17, the world’s largest computer maker said its October-December total revenue was $15.3 billion, down 24% from the same period in 2021. The figures fall short of Refinitiv analysts’ forecast of $16.39 billion in revenue.
The COVID-19 outbreak in 2020 provided an incredible increase in sales of electronics to Lenovo and other companies in the same field – many people had to work remotely and replace or upgrade their computers. However, demand has been consistently falling lately, so the vendor’s revenues began to decline as early as July-September last year.
The company’s net profit in October-December 2022 reduced even faster than revenue – by 32% to $ 437 million. After the publication of the report, Lenovo shares in Hong Kong trading on Friday fell by 2.86%.
It is known that in general, global sales of computers of all brands decreased by 29% in the fourth quarter, amounting to 65.4 million copies, and sales of laptops – by 40% year-on-year, and the forecast for the near future, according to DigiTimes Research, is also unfavorable.
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