Lenovo Group, the world’s largest personal computer (PC) maker, reported a 20% year-on-year increase in revenue for the June quarter, signaling a continued recovery in the computer market after two years of weak demand.
The Beijing-based company achieved revenue of $15.4 billion for the quarter ending June, surpassing analysts’ expectations of $14.1 billion. This marks Lenovo’s third consecutive quarter of revenue growth following a period of sluggish global demand since late 2022.
Lenovo Chairman and CEO Yang Yuanqing attributed the strong performance to the company’s strategic execution, innovation, operational excellence, and global presence. “The great start to our fiscal year reflects our clear strategy and strong execution,” Yang said ahead of the company’s earnings webcast.
For the first quarter of its 2024-25 fiscal year, Lenovo reported a 65% increase in net income, reaching $315 million, up from $191 million in the same period last year, according to non GAAP reporting standards.
Lenovo’s Intelligent Devices Group (IDG), which encompasses PCs, smartphones, and tablets, saw double-digit revenue growth, totaling $11.4 billion for the quarter. The PC business maintained a 23% global market share, while its smartphone and tablet segments each experienced 30% revenue growth.
The company has also intensified its focus on artificial intelligence (AI), integrating the technology into its devices and servers. AI PCs, which are equipped with advanced processors for on-device generative AI tasks, have become a significant industry trend.
Lenovo launched a dozen AI PC models in May and plans to unveil more at IFA, the world’s largest consumer electronics show in September, and at Lenovo’s Tech World event in October. In China, Lenovo is offering AI PC models with proprietary intelligence tailored to local regulatory and data sovereignty concerns.
According to Lenovo’s Wang, the initial feedback for AI PCs in China has been positive. The company expects AI PCs to account for 50% of the total market by 2027.
