China’s Lenovo Extends Revenue Growth Streak, Beats Expectations

FILE PHOTO: A Lenovo logo is seen in Kiev, Ukraine April 21, 2016. REUTERS/Gleb Garanich/File Photo/File Photo
FILE PHOTO: A Lenovo logo is seen in Kiev, Ukraine April 21, 2016. REUTERS/Gleb Garanich/File Photo/File Photo
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China’s Lenovo Extends Revenue Growth Streak, Beats Expectations

FILE PHOTO: A Lenovo logo is seen in Kiev, Ukraine April 21, 2016. REUTERS/Gleb Garanich/File Photo/File Photo
FILE PHOTO: A Lenovo logo is seen in Kiev, Ukraine April 21, 2016. REUTERS/Gleb Garanich/File Photo/File Photo

China's Lenovo Group reported a 9% rise in fourth-quarter revenue to $13.8 billion on Thursday, as the world's largest maker of personal computers (PCs) exits a demand slump following the aftermath of the COVID-19 pandemic.
Revenue for the January-March quarter beat an average estimate of $13 billion drawn from eight analysts, according to LSEG data.
This marks a second consecutive quarter of revenue growth for Lenovo after it suffered five straight quarters of revenue declines amid the post-COVID slowdown, Reuters reported.
Last month, research firm IDC said the global PC market has finally returned to growth during the first quarter this year after suffering nearly two years of decline.
PC shipments grew 1.5% year over year to 59.8 million during the quarter, with Lenovo firmly holding on to the No.1 title with a 23% market share, according to IDC.
But overall, Lenovo's revenue for the year ended March 31 fell 8% to 61.9 billion, beating analysts' expectations of $56.19 billion.
Lenovo's net profit for the January-March quarter rose 118% to $248 million, beating analysts’ estimates of $162 million.
The company is also actively exploring opportunities in artificial intelligence (AI), while continuing to expand its non-PC business, such as smartphones, servers and information technology services.
Revenue for its service business unit rose 8.5% to $1.8 billion for the quarter.
Lenovo’s shares soared by 12% on Wednesday after it unveiled two new AI PCs, a new breed of computers configured to effectively run AI applications.
Morgan Stanley analysts said in a client note this week that Lenovo will likely be one of the main beneficiaries of the AI PC boom. While AI PCs now account for just less than 5% of the market this year, about 64% of new PCs will be AI PCs by 2028, they said.
As such, AI PCs can generate up to 53% of revenue by 2028 for Lenovo, the highest among all the PC manufacturers, compared with the current 2%, they added.
Lenovo's shares fell 0.18% on Thursday, ahead of the quarterly earnings release.

 



Apple's App Store Rules Breach EU Tech Rules, EU Regulators Say 

16 September 2023, US, New York: The Apple logo, taken at the Apple Store on 5th Avenue in Manhattan. (dpa)
16 September 2023, US, New York: The Apple logo, taken at the Apple Store on 5th Avenue in Manhattan. (dpa)
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Apple's App Store Rules Breach EU Tech Rules, EU Regulators Say 

16 September 2023, US, New York: The Apple logo, taken at the Apple Store on 5th Avenue in Manhattan. (dpa)
16 September 2023, US, New York: The Apple logo, taken at the Apple Store on 5th Avenue in Manhattan. (dpa)

Apple's App Store rules breach EU tech rules known as the Digital Markets Act (DMA) because they prevent app developers from steering consumers to alternative offers, EU antitrust regulators said on Monday.

The European Commission, which also acts as the EU antitrust and technology regulator, said it had sent its preliminary findings to Apple following an investigation launched in March.

The EU executive said it was also opening an investigation into the iPhone maker over its new contractual requirements for third-party app developers and app stores.

It singled out Apple's three business terms.

"None of these business terms allow developers to freely steer their customers. For example, developers cannot provide pricing information within the app or communicate in any other way with their customers to promote offers available on alternative distribution channels," the EU watchdog said.