Lenovo Experiences 20% Increase In Revenue For Q3 As PC Sector Rebounds

BEIJING: Chinese tech firm Lenovo (0992.HK) announced a 20 per cent increase in its third-quarter revenue on Thursday, as the global PC sector displayed slight recovery signs. Lenovo, the leading PC manufacturer globally, announced revenue of $18.8 billion for the quarter that concluded on December 31. 

This surpassed the analysts' forecast of $17.82 billion, according to LSEG data. The company's net earnings were reportedly at $693 million, compared to analysts' forecast of $367.7 million. The worldwide PC market continues to encounter uncertainty after a post-pandemic decline, with shipments increasing by a slight 1.8 per cent in the fourth quarter of 2024, as stated by research organisation IDC.

Lenovo Q3 revenue hits $18.8 billion.

According to IDC data, Lenovo retained its status as the top PC vendor for the reported quarter, securing a 24.5 per cent market share with shipments increasing by 4.8 per cent. The company has recently broadened its focus beyond its main PC operations, venturing into software and services. It has also established itself to take advantage of the rising demand for artificial intelligence (AI) applications by expanding its AI server and software operations. The need for computers with AI capabilities has become a significant growth catalyst for the PC sector, prompting manufacturers to compete in releasing models that feature specialised chips for AI uses.

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In May of last year, Lenovo introduced its initial AI-driven PCs in China, with a worldwide release occurring in September. CEO Yang Yuanqing has estimated that AI PCs will represent 25 per cent of Lenovo's shipments by 2025, possibly hitting 80 per cent by 2027. Lenovo announced earlier this week that it has incorporated the technology of Chinese AI startup DeepSeek into its products, such as PCs and tablets. According to the company, users can utilise DeepSeek's AI services via Lenovo's AI assistant "XiaoTen" without any downloads or registrations needed. Lenovo's infrastructure solutions division, encompassing IT offerings such as servers, experienced a 59 per cent revenue rise in the December quarter compared to the prior year, fueled by robust server demand. The group providing solutions and services, which delivers cloud-based software for business clients, recorded $2.3 billion in revenue, an increase of 12 per cent compared to the previous year.