CHINESE personal computer maker Lenovo Group warned Thursday that it faced short-term volatility and challenges from the coronavirus outbreak, as it reported a better than expected quarterly profit and record revenue.

The world’s largest PC maker is among companies facing disruptions to their supply chain after local governments extended a Lunar New Year holiday and imposed strict travel curbs to limit the spread of the coronavirus.

One of Lenovo’s biggest factories is in the central city of Wuhan, the epicenter of the outbreak, where businesses remain shut, although its factories in the cities of Shenzhen and Hefei resumed work Feb. 10.

“The vast majority of the group’s factories in China have reopened and are operational on a limited basis, although its suppliers and even logistics services across the countries remained impacted,” Lenovo said in a statement.

“Nevertheless, given its extensive global footprint, the company is well positioned to address the supply challenges by leveraging its strength as a global company with worldwide manufacturing capabilities and supply chain efficiency.”

Shares of Apple and its suppliers dropped Tuesday after the iPhone maker warned sales will not meet forecasts in the current quarter as the coronavirus outbreak was pressuring its supply chain. (SD-Agencies)