6 November 2024, Wed |
5:52 AM
Lenovo Group, a global technology brand, has disclosed its impressive results for the first quarter of the fiscal year 2023/24. The company’s robust performance highlights its significant market presence in the Gulf region, substantial growth in its service-oriented business, and a substantial investment of US$1 billion in AI innovation.
For the first quarter, Lenovo Group achieved a noteworthy revenue of US$12.9 billion, with a net income of US$191 million, measured using non-Hong Kong Financial Reporting Standards (HKFRS). Notably, the revenue generated by non-PC businesses contributed 41% to the total revenue, showcasing the strong expansion and sustained profitability of the service-focused business. This success underscores the effectiveness of Lenovo’s intelligent transformation strategy, which continues to drive the company’s growth.
While navigating through a challenging market and unfavorable macroeconomic conditions, Lenovo remains optimistic about the future. The company anticipates market stabilization and improvement, as well as a rebound in the client device market during the latter half of the fiscal year.
Chairman and CEO of Lenovo Group, Yuanqing Yang, shared his insights on the quarter’s performance. He acknowledged the challenging macro environment but highlighted the resilience of Lenovo’s service-led business, which experienced strong growth and sustained profitability. Yang emphasized the continued diversification of revenue sources and expressed a cautious optimism regarding the business’s recovery in the coming quarters.
The Gulf region proved to be a stronghold for Lenovo, maintaining a substantial market share of 25.7%, as reported by the latest IDC figures. Despite fluctuations in the PC market within the Middle East and Africa (MEA) region, Lenovo’s performance in the Gulf remained solid. Mohammed Hilili, General Manager of Gulf, Lenovo, attributed this success to the company’s commitment to community and environmental advancement, as well as its strategic expansion beyond hardware.
Lenovo’s commitment to AI innovation continues to deepen, with an additional US$1 billion investment over the next three years. This investment will focus on AI devices, AI infrastructure, and embedding AI-generated content into vertical industry solutions, all aimed at enhancing customer productivity. Lenovo’s Infrastructure Solutions Group (ISG) stands out in this regard, ranking third globally in AI hardware infrastructure. The group is investing significantly in AI innovation, resulting in cutting-edge solutions, platforms, and partnerships.
The Solutions and Services Group (SSG) is also utilizing AI extensively across its portfolio, contributing to its strong growth and high profitability. As the trend of digital and intelligent transformation continues, SSG is well-positioned to harness this growth, particularly in IT services and vertical solutions.
The Intelligent Devices Group (IDG) maintained its leadership position in the smart devices market, even amid market challenges. The company’s commitment to innovation, particularly in AI devices, positions it for sustainable growth in the evolving smart spaces market.
Lenovo’s first quarter results reflect its strategic approach to business diversification, investment in AI, and commitment to innovation. The company’s strong performance in various sectors underscores its ability to adapt and thrive in dynamic market conditions.
