Chinese technology company Lenovo reported a 20% increase in third-quarter revenue on Thursday, signaling modest recovery in the global personal computer industry.
For the quarter ending December 31, Lenovo, the world’s largest PC maker, generated revenue of $18.8 billion, surpassing analysts’ expectations of $17.82 billion, according to LSEG data.
The company’s net profit reached $693 million, significantly higher than the analysts’ estimate of $367.7 million.
Despite this positive news, the global PC market continues to face uncertainty following a post-pandemic downturn. Research group IDC indicated that shipments grew by only 1.8% during the fourth quarter of 2024.
Lenovo maintained its status as the largest PC vendor for the reported quarter, capturing a 24.5% market share with a 4.8% increase in shipments, as per IDC data.
In recent years, Lenovo has diversified beyond its core PC business, expanding into software and services. The company has also positioned itself to capitalize on the rising demand for artificial intelligence (AI) applications by developing its AI server and software businesses.
Demand for AI-capable computers has become a key growth driver for the PC industry. Manufacturers are racing to introduce models equipped with specialized chips for AI applications.
Last May, Lenovo launched its first AI-powered PCs in China, followed by a global rollout in September. CEO Yang Yuanqing projected that AI PCs will make up a quarter of Lenovo’s shipments by 2025 and could reach 80% by 2027.
Earlier this week, Lenovo announced the integration of Chinese AI startup DeepSeek’s technology into its devices, including PCs and tablets.
Users can access DeepSeek’s AI services through Lenovo’s AI assistant “XiaoTen” without needing to download or register.
Lenovo’s infrastructure solutions group, which includes IT solutions like servers, experienced a 59% revenue increase in the December quarter compared to the previous year, driven by strong demand for servers.
Additionally, the solutions and services group, which offers cloud-based software for enterprise clients, reported $2.3 billion in revenue, marking a 12% increase from a year earlier.
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