Lenovo Group of China has reported impressive growth, announcing a 20 percent increase in quarterly revenue. This marks the IT giant’s third consecutive quarter of growth as the global personal computer market rebounds from its previous downturn.
For the three months ended in June, Lenovo's revenue surged to USD 15.4 billion, surpassing analysts' predictions of USD 14.1 billion. This growth reflects the broader recovery within the worldwide PC industry, where global shipments have risen by 3 percent, totaling 64.9 million units according to data from the International Data Corporation (IDC).
Lenovo continues to lead the market with a solid 23 percent share. This rebound is particularly notable after the company struggled through five quarters of declining sales during the post-COVID slump.
With the financial results, Lenovo's shares saw a slight rise of 2.37 percent during Thursday's trading. The company has shifted strategies significantly, diversifying its revenue streams beyond just PCs.
One of the standout areas of growth is Lenovo’s infrastructure solutions sector, which encompasses server and software operations. This sector alone recorded a remarkable 65 percent increase in sales, amounting to USD 3 billion for the quarter.
Net income for Lenovo reached USD 243 million, beating analysts' expectations of USD 222.94 million. This financial performance indicates not just recovery but possible future growth trajectories for the company.
A significant factor driving the market rebound is the rise of 'AI PCs', which are equipped with specialized chips to boost artificial intelligence performance. Lenovo has pioneered this innovation, launching two models of AI PCs just this past May.
Yuanqing Yang, Lenovo's CEO, holds high expectations for these AI PCs, projecting they could account for 10 percent of the company’s PC shipments by the end of 2024. Looking even farther out, he anticipates this figure may grow to between 50 to 60 percent by 2026.
