Lenovo today reported a slimmer profit for the first half of its fiscal year, despite a rise in sales during the period.
The Chinese PC manufacturer’s revenue for the six month period ended 30 September was $7.2 billion (£3.8bn), up from $6.2bn (£3.3bn) during the same period last year. But the company's profit attributable to shareholders fell by 53% during the first half of its fiscal year, from $91.2 million (£48.3m) to $43.1m (£22.6m).
The company saw a 10% year-on-year increase in the volume of shipments for the second fiscal quarter, but pricing pressure meant that revenue for the quarter increased just 1% year on year. The company blamed slow growth in mature markets and intensified competition for the small revenue increase.
It maintained its PC sales lead in China, increasing shipments there by 25% during the quarter, where the region accounted for 39% of total revenue for the quarter, at $1.4bn (£734m).
However, Lenovo lost ground in North and South America, with shipments there decreasing by 9%. Sales in Asia-Pacific were flat, the company said.
Notebook computer sales accounted for 52% of total revenue for the quarter, while Lenovo notebook shipments were up 20% year-on-year, it said. Its mobile handset business saw 39% year-on-year growth in shipments, but accounted for only 4.5% of total revenue, at $166m (£87m).
In August, Lenovo reported a profit of $5m (£2.6m) on revenue of $3.5bn (£1.8bn) during the first quarter of its fiscal year. At that time, company officials said profits had been dragged down by costs related to layoffs and a restructuring program announced in March, since having acquired IBM’s PC business last year.
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