China’s Lenovo reports slowest revenue growth in nine quarters

Lenovo Group, the world’s biggest maker of personal computers, reported flat revenue for the April to June quarter when many Chinese cities were hit by COVID-19 lockdowns, marking its most subdued result in nine quarters.

Total revenue during the period was $16.96 billion, up 0.2% from the same quarter a year ago though it was in line with an average Refinitiv estimate of $16.87 billion drawn from seven analysts. That was the smallest increase since the period ending in March 2020.

However, Lenovo has made big strides in expanding into other higher-margin businesses such as server operation, information technology services and mobile devices, with Lenovo’s non-PC business now accounting for 37% of the company’s revenue. For the quarter, net income attributable to shareholders rose 11% to $516 million.