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Lenovo warns of tough PC sales as economy falters

Simon Quicke

Lenovo has warned that sluggish PC sales continue to be a concern for those in the hardware world as the fragile state of the global economy continues to threaten technology spending.

The Chinese manufacturer issued the note of caution in a statement accompanying its first quarter results which showed that it had become the third largest PC vendor with a share of 12.2% which was boosted by its acquisition in June of German player Medion.

But the increased share and a 64% increase year-on-year in pre-tax income to $123m along with a 15% increase in revenues to $5.9bn came with a caveat that the pressure on PC sales, which Gartner highlighted only yesterday, is going to continue.

"Although the worldwide PC market has shown marginal improvement and returned to growth during the fiscal quarter one, challenges to worldwide PC demand remain such as the pace of global economic recovery and the on-going debt crisis in Western Europe," Lenovo said in a statement.

"Nevertheless, Lenovo remains optimistic that it has the right strategy to continue to outperform the worldwide PC market," it added.

Yesterday Gartner revealed that the British PC market had slumped by 15% during the second calendar quarter of the year, with shipments down to just 2.5 million units.

The analyst house listed the factors that are impacting the market including the negative economic outlook and the failure of a widespread move to Windows 7 by enterprise customers.

Consumer spending also stalled as end-users elected to hang on to ageing kit or splashed out on tablet devices, which Gartner does not count in its PC market stats.

Related Topics: Desktop PCs, VIEW ALL TOPICS

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