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Lenovo Group, the world’s largest PC maker, smashed expectations with a 31 p.c leap in first-quarter internet revenue, because the coronavirus pandemic spurs companies to shift to distant work and colleges to change to on-line studying.
Consumers caught at dwelling are additionally spending extra on PCs and different good gadgets for leisure functions, the Chinese big stated.
Net revenue got here in at $213 million (roughly Rs. 1,593 crores) for the April-June quarter, almost double market estimates whereas income grew 7 p.c to $13.three billion (roughly Rs. 99,512 crores).
In specific, China gross sales surged, climbing 17 p.c whereas these in Europe, the Middle East and Africa jumped 28 p.c. Sales in the Americas nevertheless dropped 9 p.c, hit by a declining demand for smartphones in Latin America and a scarcity of elements for Chromebooks in North America.
“Chinese government is driving domestic consumption – for sure we should leverage that to grow our business. Last quarter results can prove that we have very strong position 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 charge for PCs was nonetheless someplace between 20 p.c and 30 p.c in comparison with that in the United States of 70 p.c.
He stated Lenovo’s gross sales throughout China’s June 18 buying competition – which is closely promoted by e-commerce platforms – had doubled over the earlier yr. “We really see the strong rebound after the COVID-19,” he stated.
According to analysis agency Gartner, worldwide shipments of non-public computer systems rose 2.eight p.c in the April-June quarter, as distributors restocked their channels and cell PC demand elevated.
Lenovo retained its lead in PCs with 25 p.c of the market, forward of HP and Dell Technologies which had 24.9 p.c and 16.four p.c respectively.
Lenovo shares ended down three p.c, having jumped earlier this week in the lead as much as the earnings launch on anticipation of a powerful efficiency.
© Thomson Reuters 2020
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