The corona lockdowns in China are taxing the world’s largest PC manufacturer Lenovo. The interruptions in economic activity have led to an even greater shortage of chips, the Chinese group said on Thursday.
“Especially in the current quarter, factory closures are impacting deliveries almost everywhere,” said Vice President Luca Rossi. The situation in the PC sector is easing slightly, but the smartphone division and data centers are still under a lot of pressure.
Lockdowns in China affect businesses
Lenovo had taken advantage of the trend towards hybrid work, which increased the demand for computers worldwide. But at the beginning of the year, the outbreak of the microwave wave in China and the resulting lockdowns caused problems for the company.
In the financial quarter from January to March, sales rose 6.8 percent to $16.7 billion (15.7 billion euros). However, that was the slowest growth in seven quarters. For the full year (end of March), sales rose 18 percent to $71.6 billion and profits rose 72 percent to $2 billion — the highest level since the company’s IPO in 1994.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
