Lenovo increased quarterly revenue by 20% thanks to AI and PC market recovery

The two years that followed the active phase of the pandemic were not characterized by high demand for new PCs, so for Lenovo, maintaining positive revenue dynamics for the third quarter in a row is definitely a good sign. The company’s revenue in the last quarter grew by 20% to $15.4 billion and exceeded analysts’ expectations by $1.3 billion.

Image source: Lenovo

Lenovo CEO Yang Yuanqing attributed the strong start to the fiscal year to a clear market strategy and consistent implementation, the company’s good operational discipline and constant innovation, as well as the company’s advantages in terms of globalization. Lenovo recently completed the first quarter of its fiscal year, and the company ended it with a profit in all areas of its business. Net profit increased year-on-year by 65% ​​to $315 million.

The direction of “smart” devices demonstrated double-digit growth in Lenovo’s revenue to $11.4 billion. In the PC segment, the company’s share of the global market reached 23% and allows it to be considered the largest manufacturer in the world. In the smartphone and tablet segment, Lenovo’s revenue grew year-over-year by 30% in both cases. Particular attention is paid to the release of new PC models with the function of local acceleration of operations related to the operation of artificial intelligence systems. Additional PC models with these capabilities are expected to be announced in September and October. According to Lenovo management, by 2027 such PCs will form more than 50% of the primary market. In China, the corresponding PC models are already very popular as Lenovo localizes them to suit the local market.