Lenovo Group, which is the largest supplier of ready-made computers and laptops, reported a significant decrease in revenue and profit in the last fiscal quarter. The rise in the stock price was facilitated only by the fact that the decline was not as strong as expected.
According to Reuters, to date, Lenovo has managed to restore production in China by 100%, but some components continue to be in short supply. In the midst of the coronavirus epidemic in China, the company was forced to stop many enterprises, one of which was located directly in the infamous city of Wuhan. Those enterprises that continued to work, demanded the attraction of labor from other companies, and at certain points, the shortage of workers on the conveyor belt Lenovo made up for at the expense of office employees.
Lenovo’s net profit in the reporting period decreased by 64%, revenue fell by 9.7% to $ 10.6 billion. This is still more than analysts had expected, so the publication of quarterly reports caused a 5% increase in the company’s stock price. Lenovo representatives expressed the hope that in the next three years the capacity of the personal computer market will increase by 25% or even 30%, although they did not explain due to what factors. According to Gartner, Lenovo controlled 24.4% of the PC and laptop market in the past quarter, and the entire global market has shrunk by 12.3%, from 2013 maximum.
If you notice an error, select it with the mouse and press CTRL + ENTER.