Lenovo Group Ltd. (0992. HK) reported a 24% drop in revenue for the January-March quarter on Wednesday, meeting market expectations as PC demand continued to decrease.
The world’s largest PC maker reported fourth-quarter revenue of $12.63 billion, down 24% from a year earlier and the third straight quarterly loss.
Refinitiv’s eight analyst estimates averaged $12.74 billion.
Revenue fell 14% in March, the first annual fall since 2019. As corporations and consumers prepared for remote work, COVID-19 boosted electronics sales.
Last year, demand dropped, lowering revenue. Lenovo’s previous quarter revenue fell 24%, its largest drop in 14 years.
According to IDC, global PC shipments fell 29% to 56.9 million units in January-March, compared to pre-pandemic 2018 and 2019.
Lenovo is expanding into smartphones, servers, and IT services to boost profits.
Non-PC businesses gained 7% through March and now account for 40% of sales.
In January-March, shareholders’ net income decreased 72% to $114 million, compared to analysts’ $212.49 million expectation.
Lenovo shares slumped 3.7% in morning trade before the earnings report, while the benchmark index (.HSI) declined 0.94%.
