Revenues fell by almost a fifth in the first three months of this year but still shipped more PCs than its rivals
Lenovo has seen revenues for Q4 (ending March 31) plummet 19 per cent from £8 billion to £6 billion year on year after a decline in global sales.
Revenue for the full financial year was down three per cent to £31 billion, whilst annual losses before tax totalled a staggering £191 million.
Lenovo blamed challenging economic industry conditions for the drop. The results could have been far worse, if not for an internal restructuring programme – the biggest in its history – which the Chinese manufacturer claimed saved it £478 million in the second half of last year.
Chairman and CEO Yang Yuanqing said: “Last quarter, despite challenging economic and industry conditions that hurt our top line, the decisive actions we took mid-year allowed us to protect our profitability. We kept our core PC business strong, continuously improved profitability in enterprise and saw positive momentum in some key smartphone markets.”
The manufacturer said it still remains the global PC leader with market share of 20.1 per cent. It had shipped 12 million units in the first quarter of 2016, according to IDC, with HP (11 million) and Dell (nine million) following behind.
It also claims to have had record market share figures in the global tablet market having shipped nearly 11 million units throughout last year. Figures from IDC claimed it was third. Apple was first with 49.6 million shipments followed by second place Samsung who had shipped over 33.4 million units. Overall quarterly sales for Lenovo’s PC Group, which also includes tablets, totalled £4.2 billion.
The company identified products such as hybrids – tablets with detachable keyboards – as one of its next key markets for future growth. According to IDC, the number of hybrid tablets shipped in Western Europe for the three months ending March 31 2016 grew 190.4 per cent year-on-year from 500,000 units to over 1.5 million.