Lenovo logs into $1-bn AI push to prop up biz

New Delhi Chinese PC major Lenovo Group on Thursday reported revenue of $12.9 billion and net income of $191 million for the June quarter, which did not meet analysts’ estimates. Revenue from the non-PC businesses accounted for 41 per cent of the company’s revenue, with the service-led business achieving strong growth and sustained profitability.

Lenovo was the top vendor in the global PC market with 23.1 per cent market share in the June quarter though its shipments nosedived by 18.4 per cent, according to the IDC. The company said it remains committed to doubling investment in innovation, including an additional $1 billion investment over the next three years to accelerate artificial intelligence (AI) deployment for businesses around the world.

“Last quarter, the macro environment presented challenges, and our hardware business remained in a phase of adjustment, but we persisted in executing our strategy. Our service-led business achieved strong growth and sustained profitability,” said Yuanqing Yang, Chairman and CEO.

“As we continue to drive innovation and intelligent transformation, I am confident in the long-term position to deliver sustainable profitability and growth in the future,” he added.