Lenovo Suffers Bulky Joly because of fade in pc gross sales, earnings of corporate falls 24 %

China’s Lenovo has suffered a major setback due to the fall in demand for Personal Computers (PC). The company’s revenue fell 24 percent in the June quarter. This largest PC maker in the world is facing a decrease in sales from four consecutive quarters. In the last financial year, the company’s profit was 14 percent less.

Lenovo’s revenue was $ 12.9 billion in the June quarter. After this, the share price of the company has decreased by six percent. During the corona, there was a significant increase in the cells of electronics as customers and companies bought a large number of PCs to shift on remote work. However, last year, due to increase in interest rates and increase in inflation, there was a decrease in the company’s revenue. The speed of recovery in PC demand is weak and many retailers have an inventory without selling. Due to this, PC makers and their suppliers have had to adjust the production volumes and rates.

In the first quarter of this year, PC’s global shipments decreased by 29 percent. This caused a major loss to the American company Apple, which produced MAC computers. The report of the market research firm IDC reported that PC’s global shipments were reduced to 5.69 crore units in the first quarter. It was 8.02 crore in the same period of the previous year. In the last quarter of the previous year, these shipments decreased by 28.1 percent on a year-on-year basis. Apple’s shipments declined by about 40.5 percent in the first quarter. Shipments decreased for DELL was 31 percent. Apart from this, Lenovo, Asustek PC and HP also faced a decline in shipments in the first quarter.

Apple had reported that the sale of her MAC computers had increased rapidly due to the work from home during the epidemic. It has decreased by 29 percent on the basis of year-on-year basis in terms of value in the first quarter. The IDC had said, “Demand reduction companies have got the opportunity to change the supply chain. Many companies are exploring the possibility of increasing production out of China.” There is a possibility of slowdown in the economy of big countries. In some big banks, financial crisis and increase in inflation can cause growth and investment.