From-for falling of demand for PCs, Lenovo has finished quarter with losses

The last time the company had a quarterly loss in 2015.

Chinese electronics manufacturer Lenovo announced the results for the first quarter 2017/2018 financial year ended 30 June.

For the quarter, revenue totaled $10 billion, almost unchanged from last year. Lenovo, who lost in the quarter position as the world’s biggest PC maker, HP, has worked with losses, amounting to $72 million, while in the same period last year it had a profit of $173 million.

The last time the company had a quarterly loss in 2015, in the second fiscal quarter. Lenovo has not justified expectations of analysts polled by Thomson Reuters, whose average forecast was $5.29 million profit.

The company explained the deterioration of the increase in operating costs and weak growth in the PC market. In the future, Lenovo suggests difficulties with the supply of components.

“In the future, difficulties with the supply of key components in the industry, and increased costs will continue to cause short-term problems for the business environment group,” — said in a statement Wantin Yang (Yang Yuanqing), Chairman and CEO of the Chinese company, adding that the cost growth was facilitated by a shortage of memory chips. Recall that in July, he promised to return this year, the PC business to positive growth.

On the performance of Lenovo has reflected the global reduction in demand for PCs as consumers increasingly turn to smartphones and tablets, especially in the domestic China market. Research company Gartner predicts the reduction of the PC market in 2017 to 3 %.

Revenue of Lenovo from release of PC and smart devices constituting almost 70% of the total, increased by 0.2 % to $of 7.01 billion Operating loss struggling mobile business group decreased to $129 million from $163 million a year earlier. The mobile business has brought the company $1.75 billion in income with growth in sales of smartphones in the 1 %. The unit responsible for production servers and corporate IT solutions, increased operating losses to $114 million with $31 million in the same quarter of the previous fiscal year.

© 2017 – 2019, paradox. All rights reserved.