The world’s largest PC manufacturer Lenovo wants to capture production in China despite the American import rates. “China gives us many benefits in production,” said company boss Yang Yuanqing to the “Wall Street Journal” and referred to costs and efficiency.
In March, the doubling of rates from China cost the Chinese company $ 15 million (13 million euros) by US President Donald Trump because there was no time to prepare.
In April, Trump ruined the China rates to 145 percent, but the increase is now exposed. Lenovo also has works in different countries – and analysts expect the PCS group from Vietnam to the US. However, it is also open how high the American rates will be at the end.
Uncertainty as a challenge
“The challenge is not the import habits itself, it is uncertainty,” Yuanqing told Wall Street Journal. “As long as we know what the final is, we will adjust quickly.” Most PCs of all manufacturers are built in China.
In the past quarter, the turnover of Lenovo increased by 23 percent to around $ 17 billion a year and therefore expected more than analysts. The bottom line is that the profit fell by 64 percent to $ 90 million.
A third of the German PC market
In Germany, Lenovo recently obtained a share of 33.4 percent on the PC market after a good 14 percent increase in turnover. A central driver for the company is the coming end of supporting the Windows 10 control system in October, said Germany -Baas Mirco Krebs. Moreover, the company with so-called AI-PCs, which are specially equipped for applications with artificial intelligence. Their share has risen from 2.8 to 7 percent.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
