Lenovo has broken its five-quarter streak of revenue losses as the company plans a strategic shift toward making AI PCs or personal computers.
Lenovo Records $15.72 Billion in Q4 Revenue
The largest PC maker on Thursday reported a Q4 2023 revenue of $15.72 billion, representing a 3% increase from the previous year. Since 2022, Lenovo has consecutively recorded quarterly losses following a drop in the demand for PCs and other electronic products stirred by the pandemic.
The positive Q4 revenue comes as demand for PCs starts to rise again after two years. Most notably, the company has recently recorded a surge in demand for AI PCs, which are specialised computers designed to run artificial intelligence programs.
Lenovo Doubles Down on AI PCs
With the growing demand, Lenovo said Thursday it would make AI-capable PCs a strategic focus for the foreseeable future.
Luca Rossi, Lenovo’s executive vice president, said the company will start shipping “the first generation of AI PC devices in the first half of 2024.” According to researchers at IDC, Lenovo’s AI PC shipments could reach 50 million units this year.
The researchers further estimated the shipments to more than triple, reaching up to 167 million units by 2027.
While commenting on the significance of AI PCs to the PC market, the Chairman and CEO of Lenovo Group, Yang Yuanqing, said, “We believe this trend will stimulate another industry refresh cycle, as users require devices designed for more creativity and productivity.”
Lenovo has made AI a big part of its product roadmap. Earlier in February, Rossi said that within the next two to three years, up to 70% of Lenovo devices will be made AI-native.
“I think there is a huge opportunity in the consumer space, but initially, it will be in the premium space. Then you will see that these AI capabilities will flow into the rest of our product roadmap,” Rossi continued.
