HONG KONG: China’s Lenovo Group Ltd reported a 24% revenue decline for the third quarter, its second consecutive decline as global demand for computers and smartphones continued to slump.

The world’s largest maker of personal computers (PCs) said on Friday that total revenue during the October-December quarter was $15.3 billion, down 24% from the same quarter a year earlier.

The results trailed an average Refinitiv estimate of $16.39 billion drawn from seven analysts.

The outbreak of the COVID-19 pandemic in 2020 provided a huge boost in electronic sales for Lenovo and its peers worldwide as many people opted to work remotely and replaced or upgraded their gadgets.

However, demand has begun to fall and Lenovo’s revenue started contracting in the July-September quarter last year.

Net income attributable to shareholders for the October-December quarter also plunged 32% to $437 million. Lenovo shares in Hong Kong slid 2.86% on Friday.

IT research firm Gartner said last month that shipments of PCs and mobile phones are likely to fall for the second consecutive year in 2023.

PC shipments are likely to slide 6.8% this year after falling 16% in 2022, Gartner said. Lenovo’s device business saw its revenue contract 34% for the reporting quarter.

China’s Lenovo posts first revenue drop in 10 quarters as COVID lockdowns weigh

The company’s rivals Dell Technologies Inc and HP Inc have announced that they will cut staff.

Dell said it will cut about 6,650 jobs, or 5% of its global workforce, whereas HP expects to cut up to 6,000 jobs by the end of fiscal 2025, or about 12% of its global workforce.