Lenovo Takes Top PC Seller Position in Third Quarter; Future Uncertain
Despite strong third-quarter results, Lenovo has experienced turbulence after Bloomberg's spying report.
Lenovo Group Ltd. (HKEX: 0992), the giant Chinese laptop maker, was the world's top PC seller in the third quarter, shipping 16 million units globally during the period, according to International Data Corporation (IDC).
As the world demand for PCs has weakened, seeing a 0.9 percent decline to 67.4 million units during the three months through September, Hewlett-Packard Co., or HP inc. (NYSE: HPQ), lost the position of the world's most-wanted computer company.
HP held the top spot for the past two years and saw double-digit PC growth since 2016, a performance that would be difficult to match, analysts at J.P. Morgan recently said. The bank lowered its rating of the California company to "neutral" from "overweight," predicting impact from the Sino-U.S. trade war and chip shortages, according to CNBC.
Lenovo, however, saw its business improve as it revamped its channel strategy and implemented more stable management. The company's acquisition of Fujitsu Ltd.'s PC unit in November also helped raise its total market share.
The strong third-quarter results added a bright spot after Lenovo suffered unexpected turbulence recently.
Last week, its Hong Kong-listed shares tanked 15 percent after Bloomberg reported that the systems of multiple U.S. companies had been compromised by malicious computer chips inserted by Chinese spies. Although the report did not name the Chinese tech firms involved in the attack, shareholders acted on fears that consumers and businesses could become reluctant to buy Chinese tech goods.
The company responded by saying Super Micro Computer Inc., which Bloomberg said was the supplier of server boards containing the malicious chips, was not a supplier of Lenovo "in any capacity."
"Furthermore, as a global company we take extensive steps to protect the ongoing integrity of our supply chain," Lenovo added.
Daiwa Research estimated that Lenovo earns more than a fifth of its revenue from the United States.
(Reuters contributed to this article)