Lenovo’s net income up 65% in June quarter as ‘intelligent devices’ see strong growth

It marks Lenovo’s third consecutive quarter of revenue growth after a period of sluggish global demand since late 2022

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A Lenovo store in Hong Kong, May 18, 2024. Photo: Bloomberg

Published: 3:35pm, 15 Aug 2024Updated: 7:01pm, 15 Aug 2024

Lenovo Group, the world’s largest personal computer (PC) maker, reported a 20 per cent year-on-year increase in revenue for the June quarter, a sign of continuing recovery in the computer market after two years of weak demand.

The Beijing-based company achieved better-than-expected revenue of US$15.4 billion in the quarter ending June, exceeding the estimated US$14.1 billion number expected by analysts.

It marks Lenovo’s third consecutive quarter of revenue growth after a period of sluggish global demand since late 2022.

“Driven by our clear strategy and strong execution, our persistent innovation and operational excellence as well as our globalisation advantages, we delivered a solid performance in our first quarter with all of our businesses improving profitability and growing faster than the market,” Lenovo chairman and chief executive Yang Yuanqing said during the company’s earnings call on Thursday.

Yang Yuanqing, chairman and chief executive officer of Lenovo Group. Photo: Bloomberg

Lenovo reported profitability across all areas of its business in the first quarter of its 2024-25 fiscal year. Net income grew 65 per cent to US$315 million from US$191 in the same period last year, based on non-GAAP reporting standards.

Lenovo’s Intelligence Devices Group (IDG), which includes PCs, smartphones and tablets, recorded 11 per cent year-on-year revenue growth to US$11.4 billion in the quarter, with the PC business maintaining a 23 per cent global market share and its smartphone and tablet businesses posting 28 per cent and 33 per cent revenue growth, respectively.