appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Kelly Le

Lenovo Group, the world’s largest personal computer (PC) maker, said it is doubling down on various artificial intelligence (AI) initiatives, including new computing devices and services that support the technology, after reporting a 3 per cent year-on-year increase in revenue in the December quarter.
The Beijing-based tech giant on Thursday said its revenue reached a better-than-expected US$15.7 billion, up from US$15.2 billion in the same period last year and ahead of analysts’ US$15.4 billion average forecast, amid a recovery in global demand to halt the company’s string of quarterly sales decline since late 2022.
Net income attributable to shareholders fell 23 per cent to US$337 million, which was down from US$437 million a year ago and below analysts’ average estimate of US$309 million.
“Looking ahead, our commitment to AI innovation, our pocket-to-cloud computing capabilities, full stack portfolio of smart devices, smart infrastructure, smart solutions and services, combined with our partnerships with other key leaders in AI, will ensure that we are well-positioned to capture the tremendous opportunities in AI,” Lenovo chairman and chief executive Yang Yuanqing said in the company’s earnings webcast on Thursday.

Lenovo’s sharpened focus on AI reflects efforts in the global PC industry to integrate the technology into their products and services, responding to a projected shift in demand to machines that can run generative AI tasks locally.
That trend is expected to stimulate another industry refresh cycle, as users require devices designed for more creativity and productivity, according to Yang.
Shipments of AI PCs, built with specific semiconductors designed to run generative AI tasks locally, are forecast to grow to more than 167 million units by 2027, up from nearly 50 million projected this year, according to a report by tech research firm IDC earlier this month. IDC predicted AI PCs to represent almost 60 per cent of the industry’s worldwide shipments in 2027.
Lenovo, which operates in more than 180 markets worldwide, is rolling out its first-generation AI PCs in the first half of this year, according to executive vice-president Luca Rossi, who also heads the company’s Intelligent Devices Group. He said Lenovo’s portfolio of AI devices will “dramatically expand” from the second half of 2024 through 2025.

Company executive vice-president Kirk Skaugen, who also serves as president of the Infrastructure Solutions Group, said on the same webcast that the company expects to double its market share in AI servers this year.
Lenovo’s shares in Hong Kong closed up 3.27 per cent to HK$8.84 on Thursday after reporting its latest quarterly earnings.
Following its announcement last August of an additional US$1 billion investment over three years to accelerate AI deployment for businesses around the world, Lenovo on Thursday said it was continuing to add more resources. It said research-and-development headcount was up more than 25 per cent year on year, “with R&D expenses-to-revenue ratio for its full [financial year to March] on track to hit an all-time high”.
ChatGPT frenzy to lift PC sales as hardware makers bet on AI
Earlier this month, Chinese internet search and AI giant Baidu said its generative AI technology will be integrated into new smartphones under Lenovo’s Moto brand, according to a Reuters report.
Smartphone shipments of Lenovo in the December quarter were up 32 per cent year on year amid increased demand across markets in the Asia-Pacific, North America and the Middle-East-and-Africa region, according to the company’s financial results announcement on Thursday.
Lenovo’s “AI for All” strategy received a major push in January at the CES trade show in Las Vegas, where the company unveiled a line-up of more than 40 new devices and solutions powered by AI. These included Lenovo devices under its Yoga, ThinkBook, ThinkCentre and Legion sub-brands for consumers and businesses.
Last October, semiconductor design firm Nvidia and Lenovo announced a new collaboration in which the computer giant will deliver fully integrated systems that “bring AI-powered computing to everywhere data is created, from the edge [of a network] to the cloud”, enabling enterprises to easily deploy generative AI applications.


Alibaba open-sources medical AI model that can detect cancer and nearly 150 conditions

Ant International embeds AI agents  across all platforms in biggest-ever product upgrade

Hong Kong to recruit AI chief by mid-2027, with confidence in local talent pool

Will AI adoption shrink office space? Asia-Pacific firms are on the fence in survey

Artificial intelligence (AI)

Chinese tech giant Lenovo doubles down on AI after world’s largest PC maker posts first quarterly revenue growth since late 2022

Computer giant Lenovo Group’s revenue rose 3 per cent year on year to a better-than-expected US$15.7 billion in the December quarter. Photo: Shutterstock

Lenovo Group chairman and chief executive Yang Yuanqing expects the company to be well-positioned in capturing opportunities in the artificial intelligence arena. Photo: SCMP

Computer giant Lenovo Group is expected to unveil its latest portfolio of artificial intelligence devices and infrastructure solutions at trade show MWC Barcelona, which will be held from February 26 to 29 in the northeastern coastal city in Spain. Photo: Lenovo

People pass by a Lenovo store in New Delhi, capital of India, on September 28 2023. Photo: Shutterstock 

Tech war: Nvidia sampling alternative AI chips to China as US restrictions take a toll there

Nvidia products on display at the annual Foxconn Tech Day in Taipei, Taiwan October 18, 2023. Photo: Reuters

Nvidia’s CEO Jensen Huang attends a session of the World Governments Summit, in Dubai, United Arab Emirates, February 12, 2024. Photo: Reuters

Chinese smartphone vendors from Meizu to Oppo step up AI integration in their devices amid expected industry recovery in 2024

Chinese smartphone vendor Meizu announced its pivot to developing artificial intelligence-enabled handsets on February 18, 2024. Photo: Shutterstock

An Oppo internal letter released on February 18, 2024, said the impact of artificial intelligence on its industry would be comparable to the period when smartphones replaced feature phones. Photo: Shutterstock

China tech: 5 US venture capital firms invested over US$3 billion in mainland AI, semiconductors

The US Capitol building in Washington, where calls are growing for tighter American measures against funding Chinese tech development. Photo: Reuters

The seven-month US congressional investigation looked at venture capital firm Sequoia Capital, based in Menlo Park, California, as well as GGV Capital, GSR Ventures, Qualcomm Ventures and Walden International. Photo: Bloomberg

Nvidia chief sees rise of ‘sovereign AI’ infrastructure across nations, driving demand for company’s advanced chips

Nvidia Corp chief executive Jensen Huang wants to expand his company’s customer base by persuading government agencies to build their own artificial intelligence infrastructure. Image: Shutterstock

Jensen Huang, co-founder and chief executive of Nvidia Corp, arrives at an event in Taipei, Taiwan, on January 25, 2024. Photo: Bloomberg

A sign on a window reading “Your AI Was Innovative And Inclusive?” is seen on day three of the World Economic Forum in Davos, Switzerland, on January 18, 2024. Photo: Bloomberg

China approves 14 large language models and enterprise applications, as Beijing favours wider AI adoption across industries

The number of government-approved artificial intelligence large language models and related applications in China currently total more than 40. Image: Shutterstock

Sample image of code in an artificial intelligence large language model. Photo: Shutterstock

Tech

Big Tech

Tech Trends

Business

China Business

News

China

The Beijing-based tech giant’s revenue rose 3 per cent year on year to a better-than-expected US$15.7 billion in the December quarter
The company is expected to unveil its latest portfolio of artificial intelligence devices and infrastructure solutions at trade show MWC Barcelona


Lenovo’s sharpened focus on artificial intelligence reflects the personal computer industry’s response to a projected shift in demand for machines that support the technology.
