Lenovo repots $17 bn revenue and $556 mn profit

Lenovo, the world’s biggest maker of PCs, has reported revenue of $16.96 billion (+0.2 percent) and net income of $556 million (+11 percent) during Q2 2022, marking its most subdued result in eight quarters.
Lenovo April-June 2022Lenovo’s Infrastructure Solutions Group (ISG) revenue touched $2.1 billion (+14 percent) during April-June 2022. Lenovo said the Cloud Service Provider segment, as well as server and storage reached all-time revenue records and all significantly outgrew the market.

Lenovo said revenue from Edge Computing almost doubled. Lenovo’s High Performance Computing business maintained its #1 leadership position on the Top500 list by adding more Lenovo systems utilizing its Neptune liquid cooling technology.

Lockdowns in China dealt a blow to the PC supply chain, with laptop manufacturing partners including Quanta, Compal and Wistron suffering significant manufacturing disruptions, according to a report by research firm Counterpoint.

Global PC shipments fell 11.1 percent in the past quarter from a year earlier, the largest year-over-year decline since the second quarter of 2013, according to Counterpoint.

Lenovo in a news statement said that the PC market is currently experiencing short-term challenges.

Counterpoint said Lenovo’s total PC shipments fell 12.7 percent to 17.4 million units due to weak consumer demand. However, Lenovo maintained its leadership in the global PC market with a 24.4 percent share.

Strong demand from companies to upgrade their digital capability has fuelled growth in Lenovo’s server and other non-PC business. The company reported 37 percent revenue growth in its non-PC business during the quarter.