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Lenovo continued to feel the effects of the PC market downturn. A series of factors reduced its unit shipments by about 9% year-to-year and crushed its PC average selling price in the first quarter 2009, dropping it by approximately 20% year-to-year. This led the company to significant reductions in revenue and a wider quarterly loss.

TBR feels that, due to the concentration of its business in both China and the high-end of the large enterprise space, Lenovo has been impacted more negatively by PC market downturn – itself a factor of the economic slowdown that began in 2008 – than several of its competitors, including Hewlett-Packard and Acer.
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