Lenovo chief warns it may have to raise prices if US-China trade war drags on
Lenovo counts North America as its biggest market. The PC giant swung into a profit in the latest quarter, beating market estimates
The trade war between China and the US is casting a long shadow over companies dependent on global commerce, with personal computer giant Lenovo Group the latest to warn of higher consumer prices if the conflict drags on.
Lenovo Group chairman and chief executive Yang Yuanqing said the Beijing-based company could be forced to raise prices if punitive tariffs were applied to computers and mobile phones that have so far remained untouched in the escalating trade conflict.
“It will have a big impact on the interests of consumers,” Yang said Thursday during the company’s conference call on its first-quarter results, where it swung to a profit and beat analyst estimates.
Hong Kong-listed Lenovo reported a net profit of US$77 million for the three months ended in June, compared with a loss in the same period a year ago. The company’s shares rose as much as 6.1 per cent in early Hong Kong trading.
North America is the biggest market by revenue for the company, which bought IBM’s PC division in 2005, while China accounted for a quarter of its sales.