Lenovo Q1 Revenue Jumps 20%, Beats Estimates as PC Market Recovers

An employee gestures next to a Lenovo logo at Lenovo Tech World in Beijing, China November 15, 2019. (Reuters)
An employee gestures next to a Lenovo logo at Lenovo Tech World in Beijing, China November 15, 2019. (Reuters)
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Lenovo Q1 Revenue Jumps 20%, Beats Estimates as PC Market Recovers

An employee gestures next to a Lenovo logo at Lenovo Tech World in Beijing, China November 15, 2019. (Reuters)
An employee gestures next to a Lenovo logo at Lenovo Tech World in Beijing, China November 15, 2019. (Reuters)

China's Lenovo Group reported a 20% rise in quarterly revenue on Thursday, as the global personal computer market showed signs of recovery after a two-year slump.

For the three months ending in June, the company's revenue rose to $15.4 billion, above the average estimate of $14.1 billion expected by analysts polled by LSEG.

This marks a third consecutive quarter of revenue growth for Lenovo after it suffered five straight quarters of revenue declines amid the post-COVID slowdown.

The global personal computer market has shown signs of recovery, with IDC data indicating a return to growth during the first quarter of this year after nearly two years of declines.

For the three months ended June, global PC shipments rose by 3% to 64.9 million units. Lenovo maintained its position as the market leader, holding a 23% market share, according to IDC.

Lenovo's shares down 0.99% in Thursday afternoon trading.

Lenovo has diversified beyond its core PC business, expanding into software and services in recent years.

The company's infrastructure solutions group, which includes servers and other hardware, grew 65% to $3 billion in revenue. Its solutions and services group grew 10% to $1.9 billion for the quarter.

Currently its non-PC business already made by 47% of its revenue mix and company chairman and CEO Yuanqing Yang told Reuters in an interview that this share will grow to 50% in the near future.

Yang said a resurgence in IT spending by businesses and AI-driven demand will boost the company's business lines across the board, including PCs, servers, and enterprise software.

The PC market is being fueled by the emerging trend of "AI PCs" - computers equipped with specialized chips optimized for AI software.

Lenovo, among the first to unveil AI PCs, launched two models in May. Yang projects 10% of Lenovo's shipped PCs will be AI PCs by year-end, potentially rising to 50-60% by 2026.

The AI boom coincides with rising China-US geopolitical tensions, including restrictions on advanced AI technology exports.

Yang said Lenovo was accustomed to such challenges and complies with regulations in all operating regions, enabling it to navigate these issues.

Lenovo's net income for the quarter was $243 million, above the average estimate of $222.94 million expected by analysts polled by LSEG.



Unified Geospatial Platform: Boosting Service Management Efficiency for Makkah City, Holy Sites

The Royal Commission for Makkah City and the Holy Sites is making significant advancements in building an advanced technical platform with the launch of the Unified Geospatial Platform project for Makkah. (SPA)
The Royal Commission for Makkah City and the Holy Sites is making significant advancements in building an advanced technical platform with the launch of the Unified Geospatial Platform project for Makkah. (SPA)
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Unified Geospatial Platform: Boosting Service Management Efficiency for Makkah City, Holy Sites

The Royal Commission for Makkah City and the Holy Sites is making significant advancements in building an advanced technical platform with the launch of the Unified Geospatial Platform project for Makkah. (SPA)
The Royal Commission for Makkah City and the Holy Sites is making significant advancements in building an advanced technical platform with the launch of the Unified Geospatial Platform project for Makkah. (SPA)

Geospatial information systems have become vital for driving economic growth, maintaining security, accelerating development, and facilitating decision-making.

They are pivotal in fostering creativity and innovation by enabling the smart use of geospatial information to achieve sustainable development goals and ensure long-term economic growth.

Saudi Arabia’s Royal Commission for Makkah City and the Holy Sites is making significant advancements in building an advanced technical platform with the launch of the Unified Geospatial Platform project for Makkah.

This initiative aims to create a unified framework for the governance and utilization of geospatial data for the city, making it accessible through a single platform, reported the Saudi Press Agency on Wednesday.

This project is the cornerstone of the Royal Commission's ambitious plan to integrate modern technologies with geospatial information systems.

This integration supports Saudi Arabia’s Vision 2030 and the Royal Commission's strategic objectives to boost service delivery in Makkah, improve city management efficiency, and provide an exceptional experience for citizens and visitors through high productivity and a diversified economy.

In recognition of its achievements, the Royal Commission for Makkah City and the Holy Sites received the Exceptional Performance Award in Geospatial Information Systems at the 2024 Esri World Conference.

The award highlights the entities and users worldwide that demonstrate vision, innovation, leadership, and dedication in their use of geospatial information systems (GIS) technology. It reflects the Royal Commission’s commitment to developing Makkah according to the highest international standards.