Lenovo warns of higher prices for their products and explain the reason

Warned the company Lenovo China – the largest producer of personal computers in the world – they will have to raise the price of their products, the increased tariffs of America, which led to the decline of its shares by 6.5% to its lowest level in two months.

He raised a warning Lenovo – which comes amid uncertainty growing in the business market due to the war trade department between the United States and China – doubts about the outlook for their sales, then it’s ruined her joy of the quarterly results announced today exceeded expectations, it has helped the sales of computers forces the company to double its profits.

He said US President Donald Trump this week: it will postpone imposition of the customs duty surcharge of 10% on the Chinese products industry, including: tablets, laptops; even the month of December next, and the desktops will start imposing tariffs on them as of the month of September next.

Chairman of the board of Directors of the company Lenovo (Yang Yuan-Ching) in a call announcing the financial results today Thursday: “will increase the prices of retail products, such as: personal computers, smart phones, the increased tariffs (America)”.

Said Yuan Qing also: the conversion of manufacturing from China to avoid the tariffs, the U.S. will also increase prices for the product, however the presence of Lenovo in the market of the world production gives them flexibility in making modifications, it also remains committed to the Chinese market.

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Industry analysts said: that the market computers global growth by 1.5% in the second quarter of the current year after falling for two consecutive quarters, with the threat of increased tariffs on Chinese goods prompted some companies to accelerate the purchase of computers.

Lenovo has emerged as the biggest winner in the sudden recovery in the market, computers, global in the second quarter of 2019, according to reports, the share of Lenovo in the market of personal computers during this quarter and 25.1%.

Said Lenovo: it was the fastest among the companies manufacturing personal computers, the Big Five, also helped the product mix improved also on the higher margin the company’s profit before tax to 5.4%, the highest margin achieved by the company in the first quarter of the Financial no.

And Lenovo today announced the growth of its revenue from personal computers and smart phones by 12%, while the company recorded a decrease of 9% in segment sales of mobile phones. Provided the sector of personal computers, smart devices and more than three quarters of the company’s total revenue, which increased by 5%.

This; the net profit increased to 162 million USD in the quarter ending last June, compared with the median forecast of 9 analysts estimated that the net profit of 154 million. As the total revenue for the Lenovo to us $ 12.51 million, in line with expectations.

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