The world’s largest manufacturer of personal computers, Lenovo Group (0992.HK), based in China, announced on Thursday that its revenue for the October-December quarter was $15.72 billion, a 3% increase over the same period last year.
Reuters reported that the outcome was contrasted with the $15.25 billion mean of eight analyst projections aggregated by LSEG.
Following a surge in demand for PCs and other electronic devices due to COVID-19, revenue began to decline in 2022. After that, Lenovo’s revenue decreased for five quarters, with experts predicting increase in the sixth.
Compared to analysts’ $309 million projection, net income attributable to shareholders increased 23% to $337 million in October through December.
According to research firm Gartner, Lenovo’s third-quarter PC shipments increased 3.2% versus the same period a year earlier. Industry-wide PC shipments likewise grew, by 0.3%, reflecting market recovery after an almost two-year decline.
According to Gartner data, Lenovo held a 25.6% share of the worldwide PC market during that time. In second, third, and fourth position were HP (HPQ.N), Dell (DELL.N), and Apple (AAPL.O).
By growing its non-PC businesses, the most renowned of which provides information technology services to businesses—the PC manufacturer hopes to increase profitability. Its service business unit had a 10% increase in revenue to $2 billion.
The benchmark Hang Seng Index (.HSI) increased by 0.15% during morning session, while Lenovo’s share price fell by 0.58%, opens new tab.
AI-capable smartphones are also being developed by Lenovo, the company that owns the Motorola smartphone brand. Lenovo has teamed with the leading Chinese search engine, 9888.HK, Baidu.
Lenovo has opened a new tab on its phones to enable Baidu’s huge language model, “Ernie”.
According to IDC estimates, 170 million smartphones with AI capabilities are expected to be shipped this year, accounting for 15% of the market.
