Lenovo suffers Big joly due to decline in PC Sales, Revenue of Company falls 24 Percent

China’s Lenovo has suffered a major setback due to the fall in demand for personal computers (PC). The company’s revenue fell by 24 percent in the June quarter. The world’s largest PC maker has been facing a decline in sales for four consecutive quarters. In the last financial year, the company’s profit was down by 14 percent.

Lenovo’s revenue in the June quarter was $12.9 billion. After this, the company’s share price has fallen by six percent. Electronics sales had increased significantly during Corona as customers and companies bought a large number of PCs to shift to remote work. However, last year the company’s revenue started declining due to the decrease in demand due to rising interest rates and rising inflation. PC The pace of recovery in demand for PCs is slow and many retailers have unsold inventory. This has forced PC makers and their suppliers to adjust production volumes and rates.

In the first quarter of this year, global shipments of PCs declined by 29 percent. This caused a huge loss to Apple, the American company that makes Mac computers. Market research firm IDC’s report stated that global shipments of PCs declined to 56.9 million units in the first quarter. This was 80.2 million units in the same period last year. In the last quarter of last year, these shipments had declined by 28.1 percent on a year-on-year basis. Apple’s shipments declined the most by around 40.5 percent in the first quarter. Shipments for Dell declined by 31 percent. Apart from this, Lenovo, Asustek Computer and HP also faced a decline in shipments in the first quarter.

Apple had said that sales of its Mac computers had grown rapidly during the pandemic due to work from home. In the first quarter, there has been a 29 percent decline in value on a year-on-year basis. IDC had said, “The decrease in demand has given device manufacturing companies an opportunity to make changes in the supply chain. Many companies are exploring the possibility of increasing production outside China.” The possibility of slowdown in the economy of big countries remains. Financial crisis in some big banks and rising inflation may hinder growth and investment.