Lenovo Tumbles as Sputtering PC, Phone Demand Hammers Sales
- Revenue declines for the first quarter in more than 6 years
- PC demand expected to pick up on adoption of Windows 10
A Lenovo Group Ltd. trackpad button is displayed on a Lenovo ThinkPad T440s keyboard at the company's store in the Sha Tin district of Hong Kong, China, on Friday, Feb. 7, 2014. Lenovo, which has headquarters in Beijing and Morrisville, North Carolina, agreed to pay $2.3 billion for IBM’s low-end server unit on Jan. 23, adding a business with wider profit margins than PCs and giving it about 14 percent of the market.
Photographer: Brent Lewin/BloombergLenovo Group Ltd. plunged in Hong Kong trading after quarterly revenue declined for the first time in more than six years on stalling demand for phones and computers.
Shares fell 10 percent in their biggest decline in two years. The world’s largest PC maker said revenue dropped 8 percent in the three months ended December, even as broadening cost cuts delivered a surprise rise in net income.