Lenovo Group, the largest PC manufacturer globally, has announced its intensified focus on various artificial intelligence (AI) ventures, encompassing novel computing tools and services that bolster AI technology. This strategic shift follows a 3% year-on-year revenue growth in the December quarter.
The tech behemoth, headquartered in Beijing, disclosed that its revenue surged to an impressive US\(15.7 billion, surpassing expectations and exceeding the previous year’s US\)15.2 billion figure. This positive performance comes amidst a rebound in global demand that halted the consecutive quarterly sales decline the company experienced since late 2022.
Despite the revenue increase, net income attributable to shareholders witnessed a 23% decline, dropping to US\(337 million from US\)437 million in the prior year, falling short of analysts’ average projection of US$309 million.
Looking forward, Lenovo’s Chairman and CEO, Yang Yuanqing, expressed confidence in the company’s AI innovation, pocket-to-cloud computing capabilities, diverse portfolio of smart devices, infrastructure, solutions, and services. He emphasized that strategic partnerships with key AI industry leaders will position Lenovo strongly to capitalize on the vast opportunities in the AI landscape.
Lenovo is set to unveil its latest array of AI devices and infrastructure solutions at the upcoming MWC Barcelona trade show scheduled from February 26 to 29 in Spain.
The heightened emphasis on AI by Lenovo mirrors the broader trend in the global PC sector, as companies strive to integrate AI into their offerings in response to the anticipated shift in demand towards machines capable of executing generative AI tasks locally.
Lenovo’s executive vice-president, Luca Rossi, leading the Intelligent Devices Group, revealed plans to launch the first-generation AI PCs in the first half of this year, with a significant expansion of the AI device portfolio slated for the latter half of 2024 and 2025.
Furthermore, Kirk Skaugen, Lenovo’s executive vice-president and president of the Solutions and Services Group, anticipates doubling the company’s market share in AI servers this year. The Solutions and Services Group achieved record revenue of US$2 billion in the December quarter, with a notable operating margin exceeding 20%.
Lenovo’s shares in Hong Kong surged by 3.27% to HK$8.84 following the release of its latest quarterly financial results.
In a bid to accelerate AI deployment globally, Lenovo had previously announced a substantial additional investment of US$1 billion over three years. The company continues to bolster its resources, with a notable increase of over 25% in research and development headcount year-on-year.
Lenovo’s “AI for All” strategy gained momentum at the CES trade show in Las Vegas last January, where the company unveiled a comprehensive lineup of more than 40 new AI-powered devices and solutions across its various product lines catering to both consumers and businesses.
Moreover, Lenovo’s collaboration with semiconductor design firm Nvidia aims to deliver fully integrated systems that facilitate the deployment of generative AI applications seamlessly, from the network edge to the cloud, empowering enterprises with advanced AI capabilities.
