China's #Lenovo Group Ltd (0992.HK), the world's largest personal computer (PC) maker, reported a return to profit on Thursday but said rising component prices could pressure its bottom line this year as supply shortages extend to batteries. Profit reached $535 million in the year to March on revenue that fell 4 percent, just missing analyst estimates. The news sent Lenovo shares up as much as 6 percent in Hong Kong trade. The result comes as Lenovo navigates a PC market that has shrunk markedly since the advent of tablet computers. According to researcher Gartner, global PC shipments fell for the 10th consecutive quarter in January-March, dipping below 63 million units for the first time since 2007. Lenovo's annual shipments fell 1 percent versus a market decline of 3 percent, with its share rising 0.4 percentage point to a record 21.4 percent. Revenue in its PC and smart devices unit - which makes up 70 percent of the total - fell 2 percent. The company blamed the declines on transition in its smartphone and data center businesses, as well as on a difficult macro environment and component supply constraints.
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