Lenovo sees pandemic-driven PC demand persisting as revenue jumps

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SHANGHAI, Aug 11 (Reuters) – China’s Lenovo Group Ltd (0992.HK) stated it expects robust demand for private computer systems to proceed till not less than 2025 because the pandemic completely adjustments how folks reside and work, after it reported a greater than doubling in first-quarter revenue.

The world’s greatest maker of non-public computer systems (PC) stated it was not seeing a slowdown in pandemic-driven demand, as some analysts have predicted, as a result of many individuals proceed to work at home whereas firms are buying extra PCs as they re-open places of work.

“The hybrid working mannequin will turn out to be the brand new regular, the PC has come again to the centre of individuals’s work and lives,” Lenovo’s Chairman and CEO Yuanqing Yang instructed Reuters in an interview.

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Shares within the firm rose by as a lot as 9.7% after the corporate posted an nearly 120% bounce in first-quarter revenue to $466 million, and had been on the right track for his or her greatest day by day share achieve since March 30..

Analysts had anticipated a revenue of $345.23 million, in response to Refinitiv’s common of six forecasts.

Income rose 27% to $16.9 billion from $13.3 billion a 12 months earlier, additionally topping analyst expectations of $16 billion. Internet earnings margin was 2.8%, which the corporate stated was the best in a few years

The outcomes had been the primary earnings launched by the corporate because it reorganised its enterprise teams in February.

Yang stated that they anticipated the worldwide chip scarcity to final till the primary half of subsequent 12 months and that the corporate nonetheless had a really giant backlog of orders to fulfil. Nevertheless, he stated Lenovo was helped by its distinctive hybrid provide chain mannequin which sourced elements externally and from in-house manufacturing.

He stated the corporate needs to realize “hyper progress” in its cell enterprise, which incorporates the Motorola smartphone vary, leveraging a altering aggressive panorama that has seen former chief Huawei Applied sciences (HWT.UL) retreat from the market.

“Positively, any further, we’ll drive the worthwhile progress for this enterprise,” he stated. “We need to be a stable no.3 in North America, we’ll develop sooner in Europe and a few Asia Pacific international locations.”

Worldwide shipments of non-public computer systems rose 13% year-on-year to hit 82.3 million models within the second quarter of 2021, with desktop shipments rising for the primary time because the fourth quarter of 2019, analysis agency Canalys stated in a report final month.

Lenovo prolonged its trade lead, delivery greater than 20 million models for the third consecutive quarter to take 24.4% market share, in contrast with HP Inc (HPQ.N) with 22.6% and Dell with 17%, Canalys stated.

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Reporting by Brenda Goh; Further reporting by Donny Kwok in Hong Kong; Enhancing by Kirsten Donovan, Christopher Cushing, Jane Wardell and Kim Coghill

Our Requirements: The Thomson Reuters Belief Ideas.

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