China’s Lenovo posts 65% rise in Q2 profit, says chip shortage still challenging By Reuters

© Reuters. FILE PHOTO: A Lenovo emblem is seen on the pc in Kiev, Ukraine April 21, 2016. REUTERS/Gleb Garanich

By Brenda Goh

SHANGHAI (Reuters) – China’s Lenovo Group (OTC:), the world’s greatest maker of non-public computer systems, mentioned {that a} international chip scarcity remained a problem even because it reported a 65% rise in second-quarter revenue on Thursday.

The corporate mentioned it was capable of outgrow the market by securing extra provide of elements than its friends, however acknowledged that the chip scarcity was “inflicting delays so as fulfilment and vital back-log orders throughout PCs, smartphones, and servers.”

Shares within the firm fell 5% after its outcomes which Guotai Junan analyst Gin Yu mentioned mirrored market considerations over how the semiconductor scarcity, which has impacted items from vehicles to dwelling home equipment, was affecting worldwide PC shipments.

Analysis consultancy Gartner (NYSE:) mentioned final month that development in worldwide PC shipments slowed within the September quarter as easing anti-virus measures prompted shopper and academic spending to maneuver away from PCs to different priorities and as chip shortages constrained laptop computer shipments.

Lenovo retained the title of largest worldwide PC vendor by shipments, although its development slowed after 5 consecutive quarters of double digit development, Gartner mentioned. Within the third quarter, Lenovo’s international market share grew 1.8% to 23.7%.

On Thursday, it reported revenue for the quarter ended Sept. 30 attributable to fairness holders jumped to $512 million versus $310 million in the identical interval a 12 months earlier, however the 65% development fee was its slowest prior to now three quarters.

Income rose 23% to $17.9 billion, barely above a median estimate of $17.3 billion from 9 analysts, in response to Refinitiv knowledge.

The corporate mentioned that it noticed robust gross sales development in China and America, however a decline elsewhere within the Asia Pacific because of fewer academic offers in Japan. It added that it anticipated PC demand to be consistent with business assessments of 340-355 million a 12 months for the following few years.

Chairman Yang Yuanqing mentioned in a press release that the corporate had elevated its analysis and improvement (R&D) funding by 60% throughout the quarter and that its objective of doubling R&D spending over three years remained.

The corporate’s R&D expenditure has lately come underneath scrutiny in Chinese language media after it abruptly withdrew its utility for a ten billion yuan ($1.55 billion) share itemizing in Shanghai, days after it had been accepted by Shanghai’s STAR Market.

Disclaimer: Fusion Media want to remind you that the information contained on this web site isn’t essentially real-time nor correct. All CFDs (shares, indexes, futures) and Foreign exchange costs usually are not offered by exchanges however reasonably by market makers, and so costs will not be correct and should differ from the precise market value, that means costs are indicative and never applicable for buying and selling functions. Subsequently Fusion Media doesn`t bear any accountability for any buying and selling losses you may incur on account of utilizing this knowledge.

Fusion Media or anybody concerned with Fusion Media won’t settle for any legal responsibility for loss or harm on account of reliance on the knowledge together with knowledge, quotes, charts and purchase/promote alerts contained inside this web site. Please be totally knowledgeable concerning the dangers and prices related to buying and selling the monetary markets, it is likely one of the riskiest funding types doable.

Source link


News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button