Lenovo Records 65% Increase in Second-Quarter Profit despite Chip Shortages

Lenovo Group reported second-quarter earnings with 65% increase in revenue despite ongoing supply chain shortages and chip production.

The Chinese computer manufacturer stated how it was able to boost profits and outgrow the market by securing strong supplies in comparison to its rivals. However, even with profits, the company shed light on the ongoing issues with chip shortages and how it has led to shipment delays and back-logs.

Lenovo has managed to keep its title of being the largest computer manufacturer by shipments even after declining growth and shares falling. Research consultancy Gartner stated that the company’s global market share increased 23.7% in the third quarter.

Revenue was reported to have increased 23% to $17.9 billion just above $17.3 billion according to Refinitiv data. On the other hand, the demand for personal computers is expected to meet 340-355 million in the coming years. During a statement, Chairman Yang Yuanqing said the company will increase investment in research and development by 60% and aims to double the allocation over the next few years.