1 week Ago By Varun Godinho
Lenovo Group, the world’s largest maker of personal computers, beat analysts’ expectations with its September quarter earnings. Net income grew 44 per cent to $358.5 million (A$555.
12 million) compared with an average estimate of $343.3 million (A$531.58 million).
Revenue increased 24 per cent to $17.85 billion (A$27.64 billion), also exceeding average analyst projections of $15.
97 billion (A$24.73 billion). Lenovo’s results come as industry research firm IDC said that the company accounted for the bulk of PC shipments in the third quarter of this year with 16.
5 million units, up 3 per cent over the similar period in 2023. HP and Dell shipped significantly less fewer PCs than Lenovo in the third quarter, with 13.6 million and 9.
8 million units respectively. “Demand, without a doubt, has returned for PCs amongst consumers and commercial buyers,” said Jitesh Ubrani, research manager with IDC’s Worldwide Mobile Device Trackers. Lenovo’s earnings come at a time when consumers are heading into the holiday buying season which may see demand rise for its PCs even further.
PC makers are making a big push this year to add artificial intelligence, with Microsoft’s Copilot+ offering enticing them to upgrade their devices. The reception to a new crop of AI PCs will be crucial to future growth of PC shipments. “While we expect AI to reach ubiquity at some point at the end of this decade, the ramp up towards mass market will take longer than expected, well into 2026,” states research vice president of devices and displays, Linn Huang.
“The next year-and-change will be largely about developing software, use cases, and target audiences for this AI-enabled hardware.” In a note, DBS said Lenovo likely has a strong pipeline to expand its AI PC offerings through 2024 and 2025. Shipments of these products could more than double in the next two years, making up 20 per cent and 47 per cent of its total PC shipments in fiscal 2025 and 2026, respectively, DBS said.
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