Lower PC sales hamper Lenovo’s revenue in fiscal 2023

Lower PC sales hamper Lenovo’s revenue in fiscal 2023

Lenovo suffered greatly for its final results for fiscal year 2023 due to lower PC sales. As a result, total sales for this fiscal year remained stuck at $62 billion.

Compared to 2022, total sales fell 14 percent to $62 billion. In the previous year, it was $71 billion. The main cause was the decline in PC sales.

However, Lenovo does expect the PC market to rebound soon. The trend of declining PC sales is now said to have stabilized and to pick up again in the second half of this year.

Other market segments

For the other market segments, Lenovo was a lot more positive. IT services sales, the Solutions and Services Group (SSG), rose 22 percent to $6.7 billion. IT services will continue to pick up in the coming period, generating more revenue, it is expected.

More storage sales

Furthermore, revenue from the tech giant’s infrastructure portfolio increased. In fiscal 2023, the Infrastructure Solutions Group (ISG) posted revenue of nearly $10 billion. This was 37 percent more than in 2022. Lenovo’s storage applications in particular posted record sales.

The tech giant expects sales in this market segment to continue to grow in the coming years. This is because companies continue to invest in upgrading or renewing their ICT infrastructure. Most revenue is expected from edge applications, followed by storage applications and server infrastructure.

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