Lenovo posts revenue drop for the first time in 10 quarters due fall in demand for PCs and tablets

China's Lenovo Group revealed its first revenue loss in 10 quarters, with sales declining particularly in China amid the country's strict coronavirus (COVID-19) measures. This comes as the pandemic-fueled computer sales boom comes to an end.

Lenovo on Thursday reported that overall revenue for the July-September quarter was $17.09 billion, down 4% from the same period a year earlier.

However, it is higher than the $16.74 billion average Refinitiv estimate derived from seven analysts. Since the quarter ending in March 2020, that was the first decline.

With a growth rate of just 0.2%, Lenovo's first-quarter revenue growth had already stalled. The business announced a 2% decline for the first half of its fiscal year in addition to its results for the second quarter.

According to a report released last month by data company IDC, the troubles of Lenovo are a reflection of a declining global PC market.In the third quarter, global shipments of PCs decreased 15% year over year.

However, the business continues to grow its non-PC business and is on a path to improved profits. For the quarter, net income attributable to shareholders increased by 6% to $541 million.

(With inputs from agencies)

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