Lenovo reported its third consecutive quarter of better-than-expected profits as PC and server demand exits an all-time slump.
The PC maker beat analyst estimates for the March quarter, doubling its net income to $248m (1.8bn yuan). Sales in this period were $13.8bn, as opposed to analyst estimates of $13.1bn.
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Lenovo’s PC shipments grew 1.5% year over year to 59.8 million during the same quarter.
However, the company’s revenue for the year fell 8% to $59.6bn, slightly below analyst expectations.
Lenovo is currently looking to explore more opportunities in AI, while also continuing to expand its smartphone, server and information technology services.
Later this year, Lenovo will release a foundational model that customers can build with their proprietary data for a personalised experience on their PC.
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By GlobalDataThis personalised experience and the ability to build large language models from closed and proprietary data is what Lenovo describes as “AI for all”.
In a recent interview with Verdict, VP and general manager for Lenovo’s AI and high performance computing business, Scott Tease, said: “We want to show people how we can bring AI wherever it is, it could be at the desktop with your PC, it could be at an edge device.”
GlobalData forecasts that the overall AI market will be worth $909bn by 2030, having grown at a compound annual growth rate (CAGR) of 35% between 2022 and 2030. In the GenAI space, revenues are expected to grow from $1.8bn in 2022 to $33bn in 2027 at a CAGR of 80%.
