Lenovo swaps CEOs following sales slump

Skidding to a halt: Lenovo's sales fell 20 per cent in its most recent quarter

Lenovo has lamented a sharp contraction in the high-end PC market as it posted its first quarterly loss for three years and announced the resignation of its chief executive.

The world’s fourth biggest PC manufacturer saw global PC shipments fall five per cent year-on-year in the three months to 31 December, as it highlighted a decrease in commercial unit sales, particularly at the high end.

Sales fell 20 per cent to $3.59bn (£2.46bn) while pre-tax losses, excluding a $6m restructuring charge, hit $90m.

Lenovo did not even get any joy from EMEA, where it has recently posted market share gains. Unit sales in the region fell three per cent annually, compared with an industry shipment increase of one per cent.

In response, the China-based vendor has unveiled a series of management changes designed to steady the ship. With William Amelio stepping down after three years at the helm, Yang Yuanqing has returned to the role of chief executive, a position he held between 2001 and 2004.

Lenovo has also created the new position of president and chief operating officer, which will be held by Rory Read.

“In the past quarter, the same as many other companies, Lenovo was deeply impacted by the global economic turmoil,” said Yuanqing.

“We have taken actions to ensure that in an uncertain economy, our business operates as efficiently and effectively as possible, and continues to grow in the future.”