Lenovo Group, the world’s largest PC maker, smashed expectations with a 31 p.c leap in first-quarter web revenue, because the coronavirus pandemic spurs companies to shift to distant work and colleges to modify to on-line studying.
Consumers caught at house are additionally spending extra on PCs and different good gadgets for leisure functions, the Chinese big mentioned.
Net revenue got here in at $213 million (roughly Rs. 1,593 crores) for the April-June quarter, practically double market estimates whereas income grew 7 p.c to $13.three billion (roughly Rs. 99,512 crores).
In specific, China gross sales surged, climbing 17 p.c whereas these in Europe, the Middle East and Africa jumped 28 p.c. Sales within the Americas nonetheless dropped 9 p.c, hit by a declining demand for smartphones in Latin America and a scarcity of parts for Chromebooks in North America.
“Chinese government is driving domestic consumption – for sure we should leverage that to grow our business. Last quarter results can prove that we have very strong position in China,” Lenovo Chairman Yang Yuanqing instructed a briefing.
Yang instructed Reuters in a later interview that demand nonetheless had much more room to develop in China, the place the penetration fee for PCs was nonetheless someplace between 20 p.c and 30 p.c in comparison with that within the United States of 70 p.c.
He mentioned Lenovo’s gross sales throughout China’s June 18 purchasing competition – which is closely promoted by e-commerce platforms – had doubled over the earlier yr. “We actually see the robust rebound after the COVID-19,” he mentioned.
According to analysis agency Gartner, worldwide shipments of non-public computer systems rose 2.eight p.c within the April-June quarter, as distributors restocked their channels and cellular PC demand elevated.
Lenovo retained its lead in PCs with 25 p.c of the market, forward of HP and Dell Technologies which had 24.9 p.c and 16.four p.c respectively.
Lenovo shares ended down three p.c, having jumped earlier this week within the lead as much as the earnings launch on anticipation of a robust efficiency.
© Thomson Reuters 2020
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