BEIJING (Reuters) – China’s Lenovo Group Ltd (OTC: ) reported a 20% rise in quarterly income on Thursday, as the worldwide PC market confirmed indicators of restoration after a two-year hunch.
The corporate’s income rose to $15.4 billion within the three months to June, above the $14.1 billion common estimate of analysts surveyed by LSEG.
This marked Lenovo’s third consecutive quarter of income progress, after 5 consecutive quarters of income decline amid the post-COVID-19 financial slowdown.
The worldwide PC market has proven indicators of restoration, with IDC knowledge exhibiting that it returned to progress within the first quarter of this yr after practically two years of decline.
Within the three months to June, world PC shipments grew 3% to 64.9 million models. In response to IDC knowledge, Lenovo continues to keep up its place because the market chief, accounting for 23% of the market share.
Lenovo shares fell 0.99% in afternoon buying and selling on Thursday.
Lenovo has diversified past its core PC enterprise in recent times and expanded into software program and providers.
Income from the corporate’s infrastructure options unit, which incorporates servers and different {hardware}, grew 65% to $3 billion. Its options and providers group grew 10% within the quarter to $1.9 billion.
At present, its non-PC enterprise accounts for 47% of its income combine, and Yang Yuanqing, the corporate’s chairman and chief government, mentioned in an interview with Reuters that this share will develop to 50% within the close to future.
Yang mentioned the restoration in company IT spending and synthetic intelligence-driven demand will drive the corporate’s enterprise strains throughout the board, together with PCs, servers and enterprise software program.
The private pc market is being pushed by the rising development of “synthetic intelligence computer systems,” that are computer systems geared up with specialised chips optimized for synthetic intelligence software program.
Lenovo was one of many first corporations to launch synthetic intelligence computer systems, launching two fashions in Could. Yang predicts that by the top of the yr, 10% of Lenovo’s PC shipments can be AI PCs, and this proportion might rise to 50-60% by 2026.
The AI increase coincides with rising geopolitical tensions between China and the US, which embrace restrictions on the export of superior AI applied sciences.
Yang mentioned Lenovo is used to such challenges and complies with laws in all areas the place it operates, permitting it to cope with them.
Lenovo’s internet revenue for the quarter was US$243 million, larger than the US$222.94 million common estimate of analysts surveyed by the London Inventory Alternate Group.
