The total PC market will increase within the present quarter, Lenovo’s Chief Executive Officer Yang Yuanqing advised Bloomberg News after earnings on Friday. He raised his outlook for world shipments in 2025 to double-digit share development, up from a earlier forecast of 5 % to 10 %, citing demand for AI PCs and the alternative cycle facilitated by Windows 11.
Yang added that Lenovo shouldn’t be significantly deprived in opposition to its key opponents if US President-elect Donald Trump decides to slap tariffs on overseas items after formally returning to the White House.
Net earnings grew 44 % to $358.5 million (roughly Rs. 3,027 crore) within the September quarter, Beijing-based Lenovo mentioned in a submitting on Friday. That compares with a mean estimate of $343.3 million (roughly Rs. 2,899 crore). Revenue rose 24 % to $17.85 billion (roughly Rs. 1,50,738 crore), additionally exceeding analyst projections.
The firm’s quarterly PC shipments climbed three % from a yr in the past, in keeping with business researcher IDC, whereas rivals like Dell Technologies Inc. and Apple Inc. noticed declines. “The market is taking a breather earlier than going into the year-end shopping for interval,” mentioned Bryan Ma, vice chairman at IDC.
PC makers are making an enormous push this yr so as to add synthetic intelligence capabilities — with a serving to hand from Windows maker Microsoft Corp. — in a bid to entice customers into an improve cycle. As the business bounces again from the troughs of latest years, the reception to this new crop of AI PCs can be essential to future success. The mass market’s curiosity for such units, which have greater value tags, nonetheless stays to be examined.
Lenovo’s AI wager shouldn’t be restricted to end-user units. The firm’s infrastructure options group, which sells servers to large-scale clients, is one other key pillar of its funding into the nascent expertise. Lenovo sees that division powering development by delivering information middle {hardware} that helps speed up AI mannequin coaching and computations.
“Lenovo’s information middle phase might develop considerably on AI server order wins and bettering provide of Nvidia’s GPUs, although profitability could stay subdued”, Bloomberg Intelligence analysts Steven Tseng and Sean Chen wrote in a report forward of the earnings launch.
© 2024 Bloomberg L.P.
(This story has not been edited by NDTV workers and is auto-generated from a syndicated feed.)
