Lenovo Group, the world’s largest personal computer maker said that a global chip shortfall will persist into next year’s first half as it reported a 65% rise in second-quarter profit on Thursday.
The company said that the shortage of chips was “creating delays in order fulfilment and considerable backlog orders across PCs, cellphones, and servers. Lenovo CEO and Chairman Yang Yuanqing told news agency Reuters that his earlier forecast of a scarcity lasting into the first half of 2022 remained unchanged.
Strong demand, particularly in the IT and electric car sectors, is driving the deficit, he said. Shares of the business plummeted as much as 5% after the results, reflecting market fears about the impact of the semiconductor crunch on global PC shipments.
Gartner said last month that softening anti-virus measures caused consumer and educational spending to shift away from PCs, while chip shortages hindered laptop shipments.
Earlier on Thursday, the company announced a $512 million profit for the third quarter ended September 30, up from $310 million a year ago.
Despite concerns over chip supply, Lenovo’s stock has surged more than 70% in a year, but this month the company cancelled its 10 billion yuan ($1.56 billion) Shanghai offering.