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China’s Lenovo – posted another drop in sales today. Revenue fell 16% to just over $14.4 billion for the three months through September.
That was worse than expected, and the firm’s fifth-straight quarterly decline. Lenovo and rivals enjoyed a huge boom during lockdowns as people geared up for working at home. But the aftermath is proving painful, with PC supply now exceeding demand.
In May, the company reported a 14% decline for the year through March – its first annual fall since 2019. The worldwide market for PCs remains very sluggish. Industry researcher Canalys says worldwide shipments were down 7% in the second quarter of this year.
To improve profits, Lenovo is now focusing on non-PC products. That includes smartphones, servers and IT services. The earnings numbers coincided with news that Lenovo is suing Taiwan-based rival Asus for patent infringement.
It’s seeking damages in a California court case. Lenovo shares sank around 3.5% today following the downbeat results.
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