STORY: Lenovo is warning of tough times ahead.
The world’s largest maker of PCs says shipments will fall as lockdowns in China worsen a shortage of computer chips.
That warning came as Lenovo posted its slowest growth in seven quarters.
Revenue rose to just under $16.7 billion - well below analyst forecasts.
Lenovo said the company’s factory operations in Shenzhen were hit by restrictions.
The city imposed a one-week lockdown in March, and conducted multiple rounds of testing.
Lenovo had benefited from a rush to buy PCs during the move to working from home.
That drove record sales and profit in the December quarter.
But that’s now losing steam as China, its biggest market, battles the new lockdowns and factory closures.
The global PC market also shows signs of a slowdown.
Industry watchers at Counterpoint say global PC shipments were down 4.3% over the first quarter, with the conflict in Ukraine adding to pressure on supply chains.
Now Lenovo’s performance will be closely watched.
It’s a bellwether for PC sales, taking almost a quarter of the global market.