Lenovo Reports 20% Revenue Growth Amid Global PC Market Rebound
The company’s 20 per cent revenue increase, marks its third consecutive quarter of growth driven by a rebound in global PC market and AI innovations
Lenovo Group of China has reported a 20 per cent gain in quarterly revenue, making it the IT giant's third consecutive quarter of growth. Revenue for the three months ended in June increased to USD 15.4 billion, exceeding analysts' projections of USD 14.1 billion, as the worldwide personal computer (PC) industry begins to recover from a two-year downturn.
According to International Data Corporation (IDC) data, global PC shipments increased by 3 per cent in the quarter to 64.9 million units. Lenovo maintained its market leadership with a 23 per cent share. Lenovo shares rose 2.37 per cent during Thursday afternoon trading. The company's result contrasts sharply with the five consecutive quarters of sales decreases it experienced during the post-COVID downturn, indicating that the extended depression in the PC market may be coming to an end.
Lenovo has been diversifying its revenue streams outside of the core PC industry. The company's infrastructure solutions sector, which comprises server and software operations, increased sales by 65 per cent in the quarter, totalling USD 3 billion. Lenovo's net income for the quarter was USD 243 million, which exceeded analysts' estimates of USD 222.94 million.
The emergence of ‘AI PCs’, computers outfitted with specialised chips meant to improve the performance of artificial intelligence software is a major driver of the market's recovery. Lenovo has been at the forefront of this innovation, introducing two AI PCs in May. Yuanqing Yang, the company's CEO, has big expectations for AI PCs, expecting that they would account for 10 per cent of Lenovo's PC shipments by the end of the year and up to 50 to 60 per cent by 2026.
