LENOVO Group Ltd.’s earnings beat estimates after the world’s largest maker of personal computers relied on new businesses to weather an unprecedented slump in global computing demand.

Net income attributable to shareholders for the quarter rose 6% to US$541 million, the company said Thursday in a statement. The average analyst estimate was US$473 million.

Total revenue during the July-September quarter was US$17.09 billion, down 4% from the same quarter a year ago, but still beat the US$16.9 billion analysts predicted. That was the first decline since the March 2020 quarter.

Lenovo had already seen growth for its first-quarter revenue grind to a halt, at only 0.2%. Together with its second-quarter result, the company reported a 2% decline for its fiscal first half.

Lenovo’s struggles reflect a weakening market for personal computers globally. Global personal computer shipments declined 15% year on year in the third quarter, according to a report published by data firm IDC last month.

The report also showed that Lenovo, HP Inc. and Dell Technologies Inc. saw year-on-year shipments fall by 16%, 28% and 21%, respectively. The Chinese company maintained its leadership in the global personal computer market with a 22.7% share. Lenovo did not give shipment numbers.

In response, Lenovo has been working over the past several quarters to improve its non-PC businesses such as smartphones, servers and information technology services, which together now make up more than a third of its sales. (SD-Agencies)