Computer maker Lenovo Group's sales in its core mainland market appear to be on the upswing, following two consecutive quarters of losses, analysts say.
The world's fourth-largest supplier of personal computers is expected to show increased unit shipments on the mainland for the quarter to June, thanks to the government-led economic stimulus programme covering 10 strategic industries and subsidised consumer electronics purchases in rural areas.
'We're seeing improved domestic personal computer sales the past few months,' said Charles Guo, analyst at JP Morgan Securities in Hong Kong, without elaborating.
Joseph Ho, an analyst at Daiwa Institute of Research, said Lenovo's improved numbers on the mainland would be confirmed later this week when market research firms International Data Corp and Gartner release their preliminary estimates of the global personal computer market during the second quarter.
Lenovo's first-quarter shipments fell 8 per cent to 4.43 million units from 4.79 million units a year earlier.
In a report, analyst Patrick Yau of Macquarie Research also saw a 'positive incremental momentum' in the Americas, where Lenovo is participating in government-led economic stimulus efforts.
'Europe is the one geographic area that remains weak,' Mr Yau said.