Lenovo Group Net Profit Falls 67%

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  • Lenovo Net Profit Falls 67%

Lenovo Group Ltd, the world’s largest personal computer maker, posted a 67 percent slide in third-quarter net profit, according to the company’s filing on Thursday.

The company said in Hong Kong that the drop was due to supply constraints and a weak macroeconomic environment.

The company attributed this to component supply constraints across the industries in which Lenovo operated impacted performance, and challenging global markets.

Profit fell to $98m over the three months through December, from $300m in the same period a year earlier.

The results come as PC makers continue to battle against tablets and smartphones which for many consumers have become the primary devices for internet access and casual computing.

Global PC shipments also fell for a fifth consecutive year in 2016, by 6.2 percent, according to a data from researcher Gartner.

Lenovo’s share price has risen over 10 percent this year, in line with gains in the Hang Seng index, but the stock ended morning trade down 2.1 percent, versus the benchmark’s 0.4 percent rise.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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