Dive Brief:
- The world’s largest PC maker, Lenovo Group, said its quarterly revenue declined 8% in the last quarter of 2015.
- Lenovo and other PC makers have struggled as demand for new smartphones and computers continues to cool.
- The company recently proactively enforced a number of cost cuts, including trimming 3,200 jobs.
Dive Insight:
The one bright spot was that cost cuts helped Lenovo increase its net income 19% to $300 million in the third quarter.
“The current fiscal quarter is the usual PC and mobile industry low season, and we expect mid-teen decline in sales on quarter-over-quarter basis,” Joseph Ho, an analyst at GF Securities (HK) Brokerage Ltd., said in an interview with Bloomberg. “2016 global PC shipments are likely to continue to decline, and it is important for Lenovo to continue to gain market share to deliver growth in the PC business.”
IDC said PC shipments dropped a total of 10.6% in the last quarter of 2015.
As hardware sales decline, PC manufacturers and chip makers have looked to break into other lines of business. In January, Intel announced it had purchased Ascending Technologies, a Germany-based startup that makes drones and the software used to fly them.
