As tipped by ChannelNews Lenovo Group has posted a 20% jump in revenue in the last quarter driven by demand for AI infrastructure with demand for the Chinese Companies PCs and devices surging.
The Companies PC and devices division delivered a strong quarter of double-digit year-on-year revenue growth, with revenue of US$13.8 billion, up 12% year-on-year. •
The business shipped 4.8% more PCs in the final quarter of 2024, when the market grew for the first time in years, according to data from consultancy IDC.
The #1 PC Company in the world Lenovo now holds 24.3% market share, further widening the lead on the number two player to almost five points, while maintaining industry leading profitability claims management.
Contributing to this division’s growth are Motorola smartphones with Australia contributing to double digit growth in the Asia Pacific region. New IDC data is expected next week.
Lenovo management are confident that their IDG division that encompasses PCs and smartphones will continue to drive the convergence of more powerful computing and more efficient models into a broad array of devices, while continuing to drive form factor innovation.
Additionally, it will optimize AI agent capabilities, enhance multi-device connectivity, and build application ecosystems to provide seamless user experiences across devices and ecosystems.
The world’s largest PC maker posted sales of almost $18.8 billion, surpassing the $17.9 billion average estimate.
Net income more than doubled to $692.7 million in the December quarter, though a chunk of that came from a one-time gain of $282 million from deferred tax credits.
Despite improved trading shares slid more than 4% in Hong Kong on the release of the latest results.
Analysts are tipping that Lenovo, Acer who lifted prices 10% this week because of Trump tariffs, along with HP and Dell will benefit from a surge in demand for devices with more AI features.
The emergence of platforms such as DeepSeek could fire up enthusiasm for so-called AI PCs, while Chinese government subsidies buoy local consumption of electronics.
What’s not known is whether the Chinese PC maker will install the Chinese AI software DeepSeek on their PCs alongside Microsoft’s Copilot or Google Gemini.
Analysts are also concerned that potential US tariffs and macroeconomic headwinds could threaten Lenovo sales.
One of the highlights in their latest results is Lenovo’s server business which is growing momentum as the demand for AI services grow.
According to Bloomberg, Lenovo and its rivals are making a big push in 2025 to add artificial intelligence capabilities, hoping to get consumers to upgrade. The reception to this new crop of computers will be crucial to driving the market’s recovery.
“On-device AI for PCs is inevitable. Therefore, right now it is about suppliers trying to be patient as their customers are dealing with headwinds unrelated to these technology advancements,” said Ryan Reith, group vice president with IDC’s Worldwide Device Trackers.
In November, Chief Executive Officer Yang Yuanqing raised his outlook for global shipments in 2025 to double-digit percentage growth, up from a previous forecast of 5% to 10%, citing demand for AI PCs and the replacement cycle facilitated by Windows 11.
Lenovo PC products are ranged at JB Hi Fi.
