By Greg Gao

(JW Insights) Nov 17 -- CEO of China's PC giant Lenovo Yang Yuanqing disclosed that the company will launch new-generation AI terminal devices, including AI PCs, as scheduled after achieving two consecutive quarters of revenue growth. This disclosure came in a company internal memo on November 16.

"Lenovo has embraced AI from all aspects, having built its advantages in computing power from client to edge to cloud and network. The company steadfastly pursued the intelligent transformation strategy over the years and has already formulated a panoramic roadmap for AI products, including AI devices, AI-guided and optimized infrastructure, solutions, and services. It is also because of these unique advantages that we have established the most powerful partnerships,” said Yang.

Lenovo reported second-quarter revenue of $14.4 billion (approximately RMB1044.72 billion) and net income of $273 million(about RMB18.07 billion), once again hitting the RMB 100 billion milestone, according to Lenovo Group’s recently released Q2 financial performance.

In the internal memo, Yang said the latest revenue report indicated that Lenovo is entering a trajectory of recovery and growth. The personal computer market has reached a bottom and is poised for a rebound.

Lenovo’s revenue for the first quarter of the 2023/24 fiscal year was RMB90.3 billion($12.5 billion), with a net profit of RMB1.33 billion($183 million). The income for the first half decreased by 20% to $27.31 billion (approximately RMB198 billion) year-on-year.

With innovative technology and products, the company raised its gross profit margin to a historic high in the second quarter. Moreover, its diversified growth engines continue to drive growth, with the proportion of non-personal computer business in the overall revenue further increasing.

The firm’s SSG(Solutions & Services Group) has set new historical revenue and operating profit records. It grasped the flourishing trends in digital office space, hybrid cloud, and sustainable development services. The group also committed to building hybrid artificial intelligence professional services.

Lenovo’s ISG(Infrastructure Solutions Group) faces multiple challenges from the global economy and industry markets, with some impact on overall revenue and profit levels. However, it still shows strong performance in areas such as storage, software, services, edge computing, and high-performance computing. 

IDG(Intelligent Devices Group) firmly maintains its global dual-champion status in personal computer shipments and activations while keeping the operating profit margin at a leading level in the industry. The group’s smartphone shipment achieved double-digit year-on-year growth in a market with lackluster overall shipment volumes.