Shulou(Shulou.com)11/24 Report--

According to CTOnews.com news on August 17, Lenovo announced today that Q2 revenue of $12.9 billion (CTOnews.com Note: currently about 94.299 billion yuan) is expected to be $13.76 billion, down 24% from the same period last year. Net profit is $176.5 million (currently about 1.29 billion yuan), down 66% from the same period last year.

Lenovo said the year-on-year decline in revenue was due to "cleaning up excess inventory in the channel". In addition, management succeeded in reducing operating expenses by 11% compared with the same period last year, achieving the goal of saving $850 million (currently about 6.213 billion yuan) one by one.

In terms of specific business, the revenue of the smart device business group, which is made up of PC, tablet, smartphone and other smart device businesses, fell 28 per cent year-on-year. Operating profit for the period under review fell 39 per cent to $650 million (currently about 4.752 billion yuan).

From a regional point of view, Lenovo's revenue in the Americas fell below the group average by 21%. Although smart device business groups recorded double-digit year-on-year declines in revenue, inventory levels in North America have returned to pre-epidemic levels. Lenovo's revenue in the Asia-Pacific region (excluding China) fell 17%, and its revenue in the Europe-Middle East-Africa market fell 29% from a year earlier.

Lenovo's revenue in china fell 29% from a year earlier, mainly due to slowing demand for personal computers and infrastructure.

Looking ahead, Lenovo said its PC business grew steadily in the second half of 2023 and was ready for a year-on-year recovery. Due to the increasing popularity of digital life around personal computers, the overall potential market of the global PC market will return to pre-epidemic levels in the short term and remain structurally higher than pre-epidemic levels in the long run.

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