China’s Lenovo has suffered a major setback due to the decline in demand for personal computers (PC). The company’s revenue fell 24 percent in the June quarter. The world’s largest PC maker has been facing a decline in sales for four consecutive quarters. The company’s profit was down 14 percent in the last financial year.
Lenovo had revenue of $12.9 billion in the June quarter. After this, the share price of the company has decreased by six percent. There was a huge increase in electronics sales 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 increase in interest rates and fall in demand due to increase in inflation. pc The pace of recovery in demand is weak and many retailers are lying with unsold inventory. This has forced PC makers and their suppliers to adjust production volumes and rates.
Global shipments of PCs were down by 29 percent in the first quarter of this year. Due to this, the American company Apple, which made Mac computers, had suffered a big loss. In the report of market research firm IDC, it was told that in the first quarter, global shipments of PC decreased to 56.9 million units. 8.02 crore in the same period last year. In the last quarter of the previous year, these shipments had decreased by 28.1 percent on a year-on-year basis. Apple’s shipments decreased the most in the first quarter, about 40.5 percent. For Dell, the decrease in shipments was 31 percent. Apart from this, Lenovo, Asustek Computer and HP also faced a drop in shipments in the first quarter.
Apple had told that the sales of its Mac computers had increased rapidly due to work from home during the epidemic. In this, there has been a decrease of 29 percent on year-on-year basis in terms of value in the first quarter. IDC had said, “The decrease in demand has given device makers an opportunity to make changes in the supply chain. Many companies are exploring the possibility of increasing production outside China.” There is a possibility of slowdown in the economy of big countries. Financial crisis in some big banks and rise in inflation could hamper growth and investment.