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Lenovo sees third quarter profit slide

by on16 February 2017

Slip-sliding away

The world's largest personal computer maker, Lenovo, posted a 67 percent slide in third-quarter net profit.

Profit fell to $98 million over the three months through December, from $300 million in the same period a year earlier. That compared with the $159.53 million that the cocaine nose jobs of Wall Street predicted.  Revenue fell six percent to $12.2 billion.

The outfit blamed component supply constraints across the industries, in addition to a challenging macro environment and global markets.

Global PC shipments fell for a fifth consecutive year in 2016, by 6.2 percent but Lenovo saw its core PC business book a two percent revenue growth to $8.6 billion, reversing a seven-quarter downward trend. Shipments rose two percent to 15.7 million units, helped by a five percent rise in commercial PCs.

However shipments in its mobile phone unit fell 26 percent, though that represented improvement since the first quarter.

Lenovo wants its mobile unit to turnaround by second half of next fiscal year.

Last modified on 16 February 2017
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