PC, mobile woes take toll on Lenovo

Contracting annual PC shipments and declining mobile phone sales cast a shadow over the outlook for Lenovo Group Ltd on Thursday, despite the technology giant reporting a profit turnaround in the 2016 fiscal year.

The Hong Kong-listed company reported a $535 million profit in the fiscal year ended Mar 31, recovering from its $128 million loss a year earlier. However, Lenovo's annual revenue fell 4 percent from the previous fiscal year to $43 billion.

The revenue of its personal computer and smart device business group, which accounts for around 70 percent of Lenovo's total income, decreased 2 percent year-on-year to $30.10 billion. Its global PC unit shipments decreased by 1 percent from a year earlier to 55.7 million units. Consumer PC unit shipments declined 6 percent year-on-year.