Hong Kong PC maker Lenovo Group Limited (HKG: 0992) has posted its results for the quarter ending March 31, the company registered declining sales and profits due to the pandemic but it largely performed better than what analysts had estimated.
Net profit for the company’s fourth quarter slumped by 64% to $43 million but it was way above the $7.5 million expected by analysts. Revenue increased to $10.6 billion signifying a 9.7% increase in relation to what the company posted last year in a similar quarter.
A study by research company, Gartner, indicates global shipment of personal computers declined by 12.3% in the first quarter of the year, this is the most decline recorded in a quarter since 2013. The research firm attributes the drop to global breakout of coronavirus.
Citing the research, Lenovo took top position in PC market share with 24.4%, U.S based PC manufacturers HP Inc. (HPQ) and Dell Technologies Inc. (DELL) came second and third with marker shares of 21.5% and 19.7%respectively.
Following breakout of the deadly virus, Lenovo was forced to temporarily shut down operation in its large factory in Wuhan where the virus originated. Things went from bad to worse, developments which resulted to Lenovo sharing staffs with other companies and even sending office workers to work in assembly plants.
Chairman of the company, Yang Yuanqing informed the media that operations have fully resumed in China further adding he’s looking forward to seeing an increase in year-on-year revenue growth for this quarter’s PC, smart devices and data center business since stay at home orders forced many people to work at home.
Yang says production in China have resumed fully but acknowledges some components are still short of supply.