Lenovo sails previous expectations with 31% first-quarter revenue leap

By Pei Li

HONG KONG (Reuters) – Lenovo Group, the world’s greatest PC maker, smashed expectations with a 31% leap in first-quarter internet revenue, because the coronavirus pandemic spurs companies to shift to distant work and colleges to modify to on-line studying.

Shoppers caught at house are additionally spending extra on PCs and different good units for leisure functions, the Chinese language big mentioned.

Web revenue got here in at $213 million for the April-June quarter, practically double market estimates whereas income grew 7% to $13.Three billion.

Particularly, China gross sales surged, climbing 17% whereas these in Europe, the Center East and Africa jumped 28%. Gross sales within the Americas nevertheless dropped 9%, hit by a declining demand for smartphones in Latin America and a scarcity of parts for Chromebooks in North America.

“Chinese language authorities is driving home consumption – for positive we should always leverage that to develop our enterprise. Final quarter outcomes can show that now we have very robust place in China,” Lenovo Chairman Yang Yuanqing advised a briefing.

Yang advised Reuters in a later interview that demand nonetheless had way more room to develop in China, the place the penetration fee for PCs was nonetheless someplace between 20% and 30% in comparison with that in the USA of 70%.

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 12 months. “We actually see the robust rebound after the COVID-19,” he mentioned.

In keeping with analysis agency Gartner, worldwide shipments of private computer systems rose 2.8% within the April-June quarter, as distributors restocked their channels and cell PC demand elevated.

Lenovo retained its lead in PCs with 25% of the market, forward of HP Inc and Dell Applied sciences which had 24.9% and 16.4% respectively.

Lenovo shares ended down 3%, having jumped earlier this week within the lead as much as the earnings launch on anticipation of a powerful efficiency.

(Reporting by Pei Li; Enhancing by Edwina Gibbs)

(Solely the headline and movie of this report might have been reworked by the Enterprise Customary employees; the remainder of the content material is auto-generated from a syndicated feed.)