Yang Yuanqing: By 2025, AI PCs will account for a quarter of Lenovo's shipping volume.

LENOVO GROUP (00992) announced its performance for the third quarter of 2024, with overall performance showing impressive results, especially with a year-on-year net profit growth of 106%. As for the PC industry trend that is most concerned by the outside world, LENOVO GROUP Chairman and CEO Yang Yuanqing stated that he is very optimistic about the Lenovo PC business in 2025. The DeepSeek phenomenon will drive the development of AI PCs, stimulate the demand for upgrades, and with Windows 10 entering its final stage, this will accelerate the update and replacement of the Windows operating system, all of which will drive market growth. Under a positive outlook, Lenovo is expecting close to double-digit growth. From the financial report of LENOVO GROUP, it can be seen that the IDG Intelligent Devices Business Group's revenue grew by 12%, with profitability at the upper range of historical levels, and revenue approaching one trillion. In addition, sales of gaming PCs performed exceptionally well during the holiday season, reflecting consumer shift towards high-performance PCs to enhance gaming experience. Commercial revenue benefited from the update to Windows 11, with sales of high-end workstations leading the recovery in business demand. A report by Reuters pointed out that despite Lenovo's fame in PCs, in recent years, the company has diversified its business into software and services. The company is also benefiting from the demand for artificial intelligence applications by expanding its AI server and software business. Lenovo launched its first AI PC in China in May last year, followed by a global release in September. Yang Yuanqing expects that by 2025, AI PCs will account for a quarter of Lenovo's shipments, and by 2027, this number may reach 80%. In the third quarter, Lenovo further solidified its leadership position in the PC market, expanding its lead over the second place to nearly 5 percentage points, while maintaining industry-leading profitability. Yang Yuanqing stated that Lenovo's AI PCs, with five key features, have already exceeded the expected share in the notebook total sales within six months of their launch in the Chinese market. Looking ahead, Yang Yuanqing stated that Lenovo will continue to advance higher-performance computing and more efficient models in various terminals, innovate device modalities, optimize intelligent bodies, enhance multi-device connectivity capabilities, build key application ecosystems, and provide users with a seamless experience across devices and ecosystems.