Lenovo has seen its December quarter profits fall 32 per cent as the global PC market crashes, but the computer giant expects demand to pick up sooner than first thought.
“We believe the PC market might stabilise sooner than many expect,” Lenovo Group’s Chairman and Chief Executive Yang Yuanqing told an online earnings call after the weak quarter, saying it could recover as soon as the second half of 2023.
Lenovo’s revenue for the December quarter dropped 24 per cent on the year to A$22.1 billion, while net profit fell 32 per cent to A$636 million.
Revenue for the company’s intelligent devices group — which includes PCs, tablets and smartphones — decreased by 34 per cent, with net profits down 37 per cent.
“The entire PC market experienced severe downturn,” Yang noted. “Inevitably, Lenovo was largely impacted, too.”
Lenovo expects a 5 per cent year-on-year drop for PC shipments for FY23, but expects demand to pick up “as early as the second half of this year,” according to Yang.
