Chinese PC maker Lenovo has published its financial report for its first fiscal quarter ended June 30, 2009, and the company states that affected by the weakened PC demand and the decrease of prices of computers, the company made net loss of USD16.01 million during the period.
This was the third consecutive quarter for Lenovo to make a loss, but the result was better than the prediction of market analysts, who said the company's loss would reach USD54 million in the first fiscal quarter of 2009.
In addition, by the end of June 2009, Lenovo's quarterly sales decreased by 18% to USD3.46 billion.
However, Lenovo said because of its leading position in the Chinese market and its expansion in the emerging markets, the company's worldwide PC sales volume increased by 1% year-on-year and its overall market share increased by 0.4% to 8.6%. Moreover, the company benefits a lot from China's rural home appliances subsidy scheme, in which about half of the designated computers are under the brand of Lenovo.
Affected by the global financial crisis, Lenovo's sales in the United States and Europe declined and the company fired most employees of its overseas branches to focus more on the domestic Chinese market. In response to the Chinese government's rural home appliances subsidy policy, Lenovo will set up distribution networks in the rural areas.