Lenovo said its revenue during the July-September quarter of 2022 fell 4 percent to $17.09 billion in the wake of tough business conditions.
Lenovo Group in its earnings report said its profitability improved year-on-year for the 10th consecutive quarter. Second quarter net income grew 6 percent year-on-year to $541 million.
This is the first revenue drop for China’s Lenovo Group in 10 quarters as a pandemic-fuelled sales boom comes to an end, with sales especially falling in China as COVID lockdowns took a toll, Reuters news report said.
Lenovo had already seen growth for its first-quarter revenue grind to a halt, at only 0.2 percent. Together with its second-quarter result, the company reported a 2 percent decline for its fiscal first half.
Lenovo generated revenue of $1.72 billion (+26 percent) from Solutions & Services Group, $2.64 billion (+33 percent) from Infrastructure Solutions Group and $13.716 billion from Intelligent Devices Group during the quarter. 15.339
Non-PC businesses make up more than 37 percent of total revenue.
Lenovo’s struggles reflect a weakening market for PCs globally. PC shipments declined 15 percent year-over-year in the third quarter, according to a report published by data firm IDC last month.
Solutions & Services Group’s all segments revenue grew in high double digits YTY. Managed Services and Project & Solution Services account for 52 percent of SSG revenue.
Lenovo’s Infrastructure Solutions Group’s CSP1 & E/SMB2 achieved record revenue and outgrew overall market forecast by large premium. Lenovo’s Edge business achieved record revenue, up 297 percent YTY. Lenovo’s Storage business achieved record revenue, up 115 percent YTY.
Lenovo’s Intelligent Devices Group achieved industry-leading profitability at 7.4 percent. Lenovo’s PC business has 22.8 percent market share, and it enlarged gaps with key competitors. Lenovo’s PC business is #1 in 4 out of 5 geographies. Lenovo’s PC business is also the undisputed #1 in commercial segment. Lenovo’s Smart Phone business is profitable for 10 straight quarters. Lenovo’s Smart Phone business is #2 in Latin America, #3 in North America; Lenovo’s Smart Collaboration business achieved high double digit growth YTY.