The world’s largest PC maker said fourth-quarter revenue rose 27% to $21.6 billion for the period ended March, beating analysts’ expectations of $18.7 billion. Profit attributable to shareholders climbed 479% to $521 million, above forecasts of $271 million.

Its shares jumped 15% on Friday, making it the biggest gainer on Hong Kong’s Hang Seng Index.

Lenovo’s biggest business unit, which covers PCs, tablets and smartphones, recorded a 24% increase in revenue. The company said it was the division’s strongest quarterly growth in five years.

The results came as PC makers are currently dealing with high memory prices and supply shortages. Lenovo had earlier warned that the shortage could affect shipments across the industry. The company has also raised prices on some PCs to manage higher component costs.

“Supply (of memory chips) is in heavy shortage, and the cost is growing faster,” Lenovo Chief Executive Officer Yang Yuanqing told Reuters on Friday.

He added that Lenovo’s wider supplier network, including Chinese memory chip producers, helped reduce pressure on the business.

Chinese memory chipmaker ChangXin Memory Technologies recently identified Lenovo as one of its major customers in a prospectus filing. The chipmaker also reported more than 700% growth in first-quarter revenue as memory prices surged.

According to forecasts, memory chip prices doubled in the first quarter and could rise by as much as 63% this quarter. Demand from data centres has tightened supply for laptops, smartphones and cars.

Lenovo said its PC shipment growth outpaced the market by nearly six percentage points during the quarter. Research firm Counterpoint Research said global PC shipments rose 3.2% in the first quarter to 63.3 million units, while Lenovo’s shipments increased 9% to 16.5 million units. That gave the company a 26% share of the global market.

The company is also expanding its server business. Lenovo said its infrastructure solutions group, which includes its server operations, posted 37% revenue growth in the quarter, the fastest among all its business units.

It added that its server order pipeline had reached $21 billion as demand for data centre equipment continued to grow.

According to the latest report from Omdia, global tablet shipments grew by just 0.1 per cent year-on-year to 37 million units in Q1 2026, reflecting a largely stagnant market, with Chromebooks mostly affected.

Although some regions, particularly Latin America as well as the Middle East and Africa, recorded stronger performance, analysts noted that much of the growth was driven by inventory build-up rather than actual end-user demand.

The report also noted that tablet shipments declined sequentially during the quarter, in line with normal seasonal trends, further highlighting the market’s weak momentum.

“Heading into 2026, tablets have been relegated in importance for vendors across margins, volume, and overall value,” said Himani Mukka, research manager at Omdia. “In this supply-constrained environment, consumers and vendors alike are being more deliberate about which devices to prioritize. PC vendors are focusing on notebooks and desktops, while those operating across both smartphones and tablets are gravitating toward smartphones due to their outsized contribution to overall business.”

“Within the tablet space, vendors’ focus in 2026 will be skewed toward the premium segment, where demand has held up better relative to the mass market,” added Mukka. “The volume tier is more challenged: promotional headroom is limited as there is little room to absorb further price increases, and tablets lack a structural refresh catalyst comparable to the Windows 10 end-of-support cycle in the PC market. The outlook for the second half of 2026 is expected to remain cautious, with volume market segments facing the greatest pressure on both shipment volume and value.”

“Within the PC segment, Chromebooks are currently the most impacted category, with volumes declining significantly,” said Kieren Jessop, principal analyst at Omdia. “Production indicators point to a weak near-term outlook, and education-related deployments are increasingly being deferred until market conditions stabilize. Ongoing supply constraints are also expected to delay the second phase of Japan’s GIGA School Program 2.0. While the first phase – extended from end-2024 through end-2025 – was completed without major disruption, the current supply environment is likely to introduce delays in the next phase.”

The global tablet market delivered a flat performance year on year in Q1 2026. Among leading vendors, Huawei and Lenovo recorded the strongest growth, with shipments increasing 28% and 20% year on year, respectively.

Apple retained its top position, shipping 14.8 million units and growing 7.9% year on year, supported by strong performance from the iPad Air.

Samsung ranked second, but faced pricing pressures, with shipments declining 12.6% year on year to 5.8 million units. Huawei placed third, shipping 3.2 million units and growing 28% year on year, as it continues to steadily expand its presence across Asia Pacific.

Supported by both shipment pull-in and education deployments, Lenovo followed with 3.0 million units, up 20% year on year. Xiaomi rounded out the top five, shipping 2.6 million units, reflecting a 13.6% year-on-year decline in the quarter.

All major Chromebook vendors faced challenges in Q1. Lenovo, which ranked first and was a key participant in Japan’s GIGA School Program alongside its subsidiary NEC, saw shipments decline 11.2% year on year to 1.5 million units as the first phase of deployments concluded.

HP ranked second, shipping 1.0 million units, down 15.3% year on year. Acer placed third with 937K units, managing a relatively smaller decline supported by stable shipments in North America and increased shipments into APAC.

Dell experienced the steepest decline among the top five vendors, with shipments falling 28.3% year-on-year to 413K units.

ASUS, another key participant in Japan’s GIGA School Program 2.0, was the only vendor to record growth in Q1, with shipments rising 3.5% year on year to 406K units, accounting for a 9% market share.

Rather than focusing only on hardware upgrades, many global brands are presenting devices built around artificial intelligence and connected ecosystems. Lenovo’s showcase followed that pattern.

At the event, the company moved beyond routine product updates to launch experimental laptop concepts, AI-focused PCs and new tablets designed for both work and entertainment.

Unlike many exhibitors at the show, Lenovo’s presence was not centred on smartphones. Instead, the company focused on AI-driven computing, modular hardware ideas and productivity devices. Several of the concepts on display provided a glimpse of how laptops and tablets could evolve over the next few years.

Lenovo ThinkBook Modular AI PC Concept

One of the most talked-about devices from Lenovo at MWC 2026 was the ThinkBook Modular AI PC Concept.

The prototype explores a new approach to laptop design built around flexibility and customisation. Instead of a fixed structure, the device allows users to swap hardware modules and detach the display when needed.

The screen can be repositioned, used independently as a secondary display, or combined with other modules depending on the task.

This modular setup is aimed at professionals who move between different workflows such as presentations, media editing and multitasking across several applications.

The expandable design can stretch up to 19 inches, turning the device into a wider workspace without requiring multiple external monitors. Although the product is still a concept for now, it shows Lenovo’s interest in laptops that can adapt to different working environments.

Lenovo Yoga Book Pro 3D Concept

Another unique device was the Yoga Book Pro 3D Concept, one of the most futuristic laptops Lenovo displayed at the event.

The device features a dual-screen setup designed mainly for creators and designers. Its upper display can show depth-based visuals without requiring special glasses, thanks to an AI-powered system that converts standard 2D images into 3D visuals.

The lower screen functions as an interactive control surface for drawing, editing and other creative inputs. Lenovo says the concept is intended for users working in areas such as product design, architectural modelling and advanced graphics.

Lenovo Yoga Pro 7a

Alongside its experimental concepts, Lenovo also introduced a more traditional laptop aimed at real-world productivity, the Yoga Pro 7a.

The laptop is powered by AMD’s Ryzen AI processors and is designed to balance portability with performance. Lenovo emphasised on-device AI processing, allowing tasks to run locally without relying heavily on cloud computing.

In handling AI workloads directly on the device, the system is expected to deliver faster responses and improved privacy.

Key Features

• Up to 128GB unified RAM, suitable for heavy workloads such as video editing, 3D rendering and AI applications
• AMD Ryzen AI Max+ processor
• Performance support of up to 95W TDP while keeping fan noise around 22dB
• 3-inch 2.5K PureSight Pro OLED display
• Four Dolby Atmos speakers for immersive audio
• Built as an AI-ready Copilot+ PC
• A Wacom-powered Force Pad trackpad that can function as a digital drawing tablet

Lenovo Tablets at MWC 2026

Lenovo’s presence at MWC was not limited to laptops, the company also introduced new tablets aimed at both productivity users and gamers.

These devices stress Lenovo’s strategy of combining work and entertainment across portable devices.

One of the tablets unveiled was the Idea Tab Pro Gen 2, designed for students and professionals. The tablet features a 13-inch display with a 144Hz refresh rate, offering smoother scrolling and clearer visuals.

It runs on the Snapdragon 8s Gen 4 chipset paired with 12GB RAM and a large storage capacity, making it suitable for multitasking and productivity tasks.

To support extended use, the device includes a 10,200mAh battery with 45W fast charging.

Lenovo also showcased the Legion Tab Gen 5, built for mobile gaming. The tablet features an 8.8-inch display with a 165Hz refresh rate, targeting gamers who want faster response times.

Powered by the Snapdragon 8 Elite Gen 5 chipset and equipped with 16GB RAM, the Legion Tab Gen 5 is designed to handle demanding games with smoother graphics and improved performance.

Lenovo’s showcase at MWC 2026 tells us how the company is leaning heavily into AI-driven computing and experimental device design.

From modular laptops and glasses-free 3D displays to AI-focused PCs and powerful tablets, the products presented at the event show Lenovo exploring new directions for personal computing.

While some of the devices are still concepts, they provide an early look at how future laptops and tablets might evolve.

Net profit attributable to shareholders dropped to $546 million for the three months ended December 31. That figure was still above market expectations, with analysts surveyed by LSEG forecasting an average of $451.29 million.

When one-off items and non-cash charges were excluded, adjusted net profit rose 36% to $589 million, pointing to stronger underlying performance despite pressure on margins.

Revenue for the quarter climbed 18% year-on-year to $22.2 billion, with all of Lenovo’s business groups recording double-digit growth. The company said this was its highest quarterly revenue to date.

Profit margin improved to 2.7%, although restructuring costs continued to weigh on reported earnings.

Growth in artificial intelligence-related products and services was a key driver. Lenovo said AI-related revenue surged 72% from a year earlier and now accounts for 32% of total revenue. This includes AI devices, infrastructure and services.

The company’s Intelligent Devices Group, which houses its personal computer business, posted revenue of $15.8 billion, up 14% year-on-year. Lenovo’s global PC market share rose to a record 24.9% during the quarter.

Lenovo also disclosed that its Infrastructure Solutions Group took $285 million in restructuring charges. The restructuring plan is expected to deliver annual cost savings of $200 million over the next three years.

The company said it continues to push its hybrid AI strategy, including the rollout of its “Lenovo Qira” super agent and deeper collaboration with Nvidia, as it seeks to drive long-term growth across hardware and AI-led services.

The information points to a mix of experimental concepts and ready-to-ship devices, implying the company is preparing one of its most commendable line-ups in years.

The most eye-catching reveal is a prototype Lenovo laptop codenamed Project Pivo. Unlike traditional notebooks, the device features a rotating display that can move between landscape and portrait orientations. 

The idea is straightforward but potentially useful, especially for coders and anyone working with mobile or vertical content. 

Analysts say its simplicity makes it more likely to reach consumers than Lenovo’s earlier concepts, such as the ThinkBook Plus Gen 6 with a rollable screen, which launched briefly before being discontinued.

Lenovo is also expected to officially debut the Legion Go 2, a second-generation handheld gaming device first teased at CES. According to the leaks, it will ship with an AMD Ryzen 22 Extreme processor, an 8.8-inch 1600p OLED display running at 144Hz, detachable controllers with an improved grip, and storage options of up to 2TB. 

A 74Wh battery is expected to give it an edge in longevity, placing it in direct competition with devices like ASUS’s ROG Ally X and the next Steam Deck, rumoured to launch in 2028.

IFA will also see Lenovo expand its tablet and smartphone offerings. The Yoga Tab Plus, reportedly featuring a 12.7-inch 3K OLED display, will introduce AI-driven tools for note-taking and transcription. Alongside it, Motorola phones and a new Moto AI ecosystem of earbuds, trackers and connected devices are expected to appear.

Finally, the leaks hint at a slate of more experimental products. These include a Yoga Solar PC powered partly by sunlight, a laptop with a 3D screen, a vertical folding display, and even one with extendable “wings.”

While such designs may never leave the showroom floor, they reflect Lenovo’s current focus on staying ahead in concept innovation.

The company has not commented on the leaks, but all eyes will now turn to Berlin next week, when IFA 2025 opens and Lenovo confirms just how much of the speculation becomes reality.

The campaign, which began on Sunday, June 1st and runs through Monday, June 30th, 2025, has established itself as the biggest discount event in the first half of the year.

This year’s festival has been themed ‘Oversabi Deals’ and it promises to be a month-long celebration of extraordinary savings, significant price reductions, and exclusive offers for millions of shoppers nationwide.

This annual shopping extravaganza presents a valuable opportunity for both individual shoppers and corporate customers to stock up on top-quality products at unbeatable prices.

Categories include electronics, computing, mobile phones, fashion, home and kitchen appliances, FMCG, beauty and personal care, and more. Shoppers can also expect to find deals on popular products from top brands such as Starlink, Apple, Samsung, HP, Infinix, iTec, Lenovo, TECNO, Haier Thermocool, Nivea, L’Oreal, Garnier, and iPower.

The festival represents a strategic initiative to democratize access to quality products while stimulating economic activity through increased consumer spending.

It is also a way of delivering exceptional value to Nigerian consumers while supporting the growth of digital commerce across the country.

This year’s Mid-Year Festival is further boosted by Konga’s ongoing Beauty and Wellness Campaign, launched in May in partnership with L’Oréal. Every shopper receives a free premium skincare product.

Konga has also included free delivery on purchased Starlink kits and select items across major cities like Lagos, Abuja, Port Harcourt, Kano, and Ibadan, ensuring savings and smooth delivery.

“The Mid-Year Shopping Festival exemplifies our commitment to providing Nigerian consumers with unparalleled access to premium products at competitive prices,” stated Onochie Melvin, Head of E-commerce and Commercial Planning at Konga.

“This edition builds upon the tremendous success of previous festivals, incorporating enhanced features and expanded product offerings such as skincare products to meet the evolving needs of our diverse customer base.”

In addition to the massive discounts, the Mid-Year Shopping Festival will feature dynamic events including Flash Sales with limited-time offers, interactive Treasure Hunts with exclusive rewards, and Live Auctions scheduled on specific campaign days.

By tuning in to Konga Radio 103.7FM, shoppers can gain access to special discounts before they are available elsewhere. These engaging activities are designed to enhance the shopping experience while providing additional savings opportunities for participating customers.

The Mid-Year Shopping Festival reinforces Konga’s position as Nigeria’s premier e-commerce destination. Konga remains committed to consistently delivering innovative retail solutions that combine convenience, quality, value, and trust for its customers.

*For more information about the Mid-Year Shopping Festival, shoppers are encouraged to visit the Konga platform (www.konga.com) or their official social media channels.

The world’s largest PC maker earned $90 million in net profit for the quarter ending 31 March. Analysts had projected more than double that figure, with expectations set at roughly $225 million.

Nonetheless, revenue surged to $16.98 billion, surpassing the $15.6 billion target set by analysts. The increase, driven largely by sales in personal devices and infrastructure solutions, provided a brief reprieve from the pressure weighing on the company.

We can see that Lenovo’s financial picture is complicated. On the one hand, there’s rapid growth: server-related revenue rose 64% year-on-year, while cloud service offerings grew 22%, pulling in $2.2 billion. 

On the other hand, profitability is being dragged down by losses on financial instruments and narrowing margins in its infrastructure business.

The company’s ability to stay competitive globally is being tested by trade risks, especially with the United States. As a business that depends heavily on Chinese manufacturing while generating more than a third of its revenue from the Americas, Lenovo finds itself in a delicate position.

PC shipments grew 11% in the first quarter of 2025, according to market researcher IDC. The increase was driven in part by businesses and consumers rushing to place orders ahead of incoming U.S. tariffs on Chinese goods. That urgency might not last.

“The uncertainty surrounding U.S. tariffs and associated inflationary pressure could hurt PC demand in the subsequent quarters of 2025,” IDC warned in its report. 

Citi analysts also noted that price adjustments on consumer products may be speedy, but renegotiating contracts on commercial systems, which account for nearly 70% of U.S. sales, will take time.

Lenovo’s recent launch of AI-integrated PCs helped lift its smartphone and tablet business. CEO Yang Yuanqing sees this shift as key to the company’s next phase. “This has been one of our best years yet, even in the face of significant macroeconomic uncertainty,” he said.

Annual revenue hit $69.08 billion, the second-highest in Lenovo’s history, while full-year profit rose 37%. Still, its Hong Kong-listed shares dropped more than 2% after the results were released, another reminder that investors are watching profit margins more closely than sales figures.

The firm insists it’s prepared for whatever comes next. “Our global manufacturing footprint and diverse supply chain give the group maximum flexibility and resilience to navigate through uncertainties,” Lenovo stated.

But flexibility has its limits. Analysts agree that the company’s exposure to tariff-related shocks could continue to disrupt both short-term performance and long-term planning.

Karthik Narain, group CEO and CTO, Accenture called Microsoft a ‘trusted partner.

Karthik’s words:

“Congratulations to Microsoft on this incredible milestone. Accenture is proud to have been a trusted partner on this journey—with more than three decades of joint investment and co-development focused on bringing Microsoft’s transformative technology to organizations across the world. Alongside our joint venture Avanade, we help our clients innovate and reinvent their businesses with Microsoft technology. As the world enters the intelligence era, we believe that deep strategic partnerships like ours are a competitive differentiator and together, we can help accelerate value for every enterprise, government and citizen for the next 50 years and beyond.”

Jerry Kao, COO of Acer Inc. said: “Acer has partnered with Microsoft for four decades, witnessing how their constant innovation has been instrumental to the development of computing technology. From PCs leading to the digital era, and now cloud and artificial intelligence driving transformation all around us, we’re excited to continue working together to create impactful solutions that drive change.”

Shantanu Narayen, the chair and CEO of Adobe wrote:

“Congratulations to Microsoft on your 50th anniversary! This milestone is a testament to your tremendous innovation and impact. Adobe is proud to partner with Microsoft to deliver transformative digital experiences and we’re excited to keep pushing the boundaries of what technology and AI can help deliver for billions of people around the world.”

Also, Dr. Lisa Su, chair and CEO AMD sent congratulatory message to Microsoft: “Congratulations to Satya Nadella and the entire Microsoft team for an amazing 50 years of innovation! Microsoft is truly a pioneer in the industry and AMD is honored to be your partner. I’m incredibly proud of our collaboration and joint work together over the years—from driving the industry standard for personal computing with Windows, to powering the most important Azure cloud services used by so many every day with AMD EPYC and Instinct, to reaching billions of gamers with Xbox. I look forward to all we will do together over the coming years! Together, we’re shaping the future of AI and the next generation of computing.”

S.Y. Hsu and Samson Hu, Co-CEO of ASUS:

“We are honored and proud to have built a solid, long-term partnership with Microsoft for over 30 years, a company that remains at the forefront of cutting-edge technology, and that has helped ASUS achieve its AI integration goals. We look forward to many more successful years of future collaboration.”

Jeff Clarke, vice chairman and chief operating officer, Dell Technologies also felicitates with the partner: “For more than four decades, Dell’s partnership with Microsoft has driven breakthrough innovations that transform industries, empower customers and improve lives around the world. Together, we’ve redefined possibilities, from personal computing to the AI-driven technologies shaping our future, and we look forward to what lies ahead.”

Jim Johnson, senior vice president, Client Computing Group, Intel:

“For decades, Intel’s partnership with Microsoft has sparked innovation and delivered value to our customers. Together, we’ve revolutionized industries and established new benchmarks for excellence. We look forward to collaborating for the next 50 years—and beyond.”

Carl Carande, global head of Advisory at KPMG International and Vice Chair of Advisory at KPMG in the US: “Our long-standing strategic alliance with Microsoft continues to drive transformative digital innovation, enabling us to deliver greater value to clients and accelerate business outcomes. We are committed to working together with Microsoft to help organizations harness AI and emerging technologies to navigate complexity, unlock new opportunities, and lead with confidence in the intelligent age. We continue to advance our 360-degree relationship, working with Microsoft to lead the future of innovation for our own operations, for Microsoft and for clients.”

Yuanqing Yang, CEO and chairman, Lenovo:

“Having worked alongside every CEO of Microsoft in my career, I would like to personally congratulate Microsoft for its 50 extraordinary years of driving relentless innovation. From PC to mobile, and now onto the AI era, Lenovo and Microsoft have partnered in bringing personal computing to every household, enhancing enterprise productivity with Microsoft Office, and most recently in powering more personalized, productive, and protected Lenovo AI PCs with Copilot+ experiences, delivering cloud- based services and AI-driven IT solutions, enabling scalable infrastructure for the new AI era, and working towards a vision of personal AI twins and enterprise AI twins. Lenovo is proud to be a major part of this amazing journey with Microsoft and we are committed to this partnership for many more decades to come.”

Jeff Fisher, senior vice president for GeForce at NVIDIA: “Microsoft’s contribution to advancing computing over the past 50 years is worth celebrating. The NVIDIA and Microsoft partnership will continue to deliver the next era of accelerated computing and AI, from GeForce gaming to RTX AI PCs.”

Stephanie Mosticchio, principal, US and Global Microsoft Alliance Leader, PwC:

“As a proud Microsoft alum, I’ve seen firsthand how our collaboration has evolved to drive meaningful change for businesses across industries. From strategy through engineering and implementation, PwC and Microsoft drive innovation and deliver real business outcomes for clients worldwide.”

Matt Hicks, president and CEO Red Hat: “Red Hat and Microsoft have a long history of driving customer success together, from the datacenter to the cloud, out to the edge, and now, into the AI era. We continue to bring together Red Hat’s open-source expertise with Microsoft’s leading cloud capabilities to meet our customers wherever they are in their IT roadmap.”

Jay Kim, executive vice president and head of Customer Experience Office, Samsung:

“Partnering with Microsoft has allowed us to leverage cutting-edge technology, set new standards for excellence, and deliver value to our customers. Our collaboration has driven innovation, delivering the most premium PC experience in the industry with the Galaxy Book series, and seamlessly integrating Galaxy smartphone and PC capabilities to create an experience that truly resonates with our customers.”

Christian Klein, CEO, SAP: “Many congratulations to the entire Microsoft team on this milestone anniversary! For 50 years, you have been at the forefront of technology and our longstanding partnership is a testament to our two companies’ shared commitment to innovation and transformation. Together, we have driven significant advancements in key areas from cloud computing to AI, always enabling our customers to stay ahead in an ever-evolving digital landscape. We’re excited about the many ways Microsoft and SAP will continue to push the boundaries and look forward to the next chapter in your incredible success story.”

Frederic Godemel, executive vice president, Energy Management, Schneider Electric:

“Schneider Electric and Microsoft have been driven by a shared vision of world that is more electric and digital. We’re thrilled to celebrate Microsoft’s 50th anniversary and excited to continue pioneering innovative solutions together, harnessing the transformative power of AI, pushing the boundaries of what’s possible for our customers and shaping a sustainable future for generations to come.”

Erica Volini, executive vice president of Worldwide Industries, Partners, and Go-to-market at ServiceNow: “50 years is an enormous milestone, and it’s our honor to celebrate Microsoft as both a customer and partner on their journey. Their history of innovation has been instrumental in shaping the future of technology and is why ServiceNow values our partnership so deeply. Together we will keep pushing the boundaries of what’s possible and transforming how business gets done. Here’s to another 50 years!”

Tyler Prince, senior vice president, Worldwide Alliances and Channels, Snowflake:

“As someone who has led global partnerships at several of the world’s leading technology companies, I am impressed by how Microsoft has leaned in with their partner ecosystem and taken a leadership position in cloud computing and AI. We, at Snowflake, are excited to continue to strengthen our partnership in the years to come, and we look forward to jointly driving customer success in the age of enterprise AI. Congratulations Microsoft and thank you for your leadership and innovation.”

Krishna Mohan, head of Cloud Business Group, TCS: “In the past five decades, Microsoft has consistently pushed the boundaries of technology, transforming the way we live, work, and connect. Microsoft’s role in democratizing technology innovation at scale has empowered organizations worldwide to streamline operations and enhance productivity.

This relentless pursuit of excellence and commitment to groundbreaking solutions is common to both our organizations, especially as we deliver sustainable innovations that underscore our shared dedication to creating a better future for generations to come. Congratulations to Microsoft on reaching 50 years of innovation.”

Kedar Kondap, senior vice president and general manager, Product Management, Qualcomm Technologies, Inc.:

“Qualcomm is proud of our collaboration with Microsoft, from which we have delivered world-changing technology to market over the years. We share a commitment to delivering innovative solutions, and could not be more excited for what’s to come.”

50 hearty cheers to Microsoft!

The surge was driven by strong demand for AI-powered computing infrastructure, helping the company offset current challenges in the global PC market. 

Net profit more than doubled to $692.7 million for the December quarter, although a substantial portion—$282 million—came from deferred tax credits.

Lenovo is capitalising on the growing demand for artificial intelligence by incorporating DeepSeek’s cutting-edge AI models into its products, including PCs and tablets. 

The Chinese startup has gained attention for providing AI models with high inferencing efficiency and lower computational costs, making AI adoption more accessible.

“DeepSeek has improved AI efficiency. The new models with a high inferencing efficiency and low computing power costs will democratise access to AI,” Lenovo CEO Yang Yuanqing stated during an interview with Reuters.

The company anticipates that AI-enabled PCs will make up 25% of its total shipments by 2025, potentially growing to 80% by 2027. This transition is expected to drive further demand for GPU servers, which are important for AI applications.

Infrastructure and Enterprise Segments Show Strong Growth

Lenovo’s infrastructure solutions division, which includes its AI server business, posted a 59% revenue increase, pointing to the thriving reliance on AI-driven computing. The solutions and services group, which provides enterprise cloud-based software, also saw a 12% rise in revenue, reaching $2.3 billion.

Even with its progress in AI, Lenovo is still competing well in the PC market. Its intelligent devices division, encompassing PCs, smartphones, and tablets, recorded a 12% revenue gain, showing a steady commercial PC replacement cycle.

Following the earnings report, Lenovo’s Hong Kong-listed shares initially surged but later declined by over 4%. However, the company’s stock has gained 17% this year, largely driven by investor optimism over its AI advancements and strategic partnerships with firms like DeepSeek.

Beyond PCs, Lenovo’s non-PC businesses now account for 46% of total revenue, with expansion into AI-powered computing solutions strengthening its competitiveness in AI-driven infrastructure.

According to the latest Canalys data, the PC market achieved its fifth consecutive quarter of growth in Q4, with total shipments of desktops, notebooks and workstations rising 4.6% to 67.4 million units.

Notebook shipments (including mobile workstations) reached 53.7 million units, growing 6.2%. While desktops (including desktop workstations) shipments fell 1.4% to 13.7 million units.

2025 is expected to be a year of accelerating growth as the Windows 10 end-of-support deadline in October pushes hundreds of millions of PC users to refresh their devices.

“2024 was a year of modest recovery and a return to traditional seasonality for the PC market as full-year shipments grew 3.8%. Growth increased slightly in Q4, with shipments rising by 4.6% year on year, signaling a positive trend as we moved to within a year of the Windows 10 end-of-support date,” said Kieren Jessop, Analyst at Canalys. “Holiday season demand was supported by strong discounting by vendors and retailers, enticing consumers who have become increasingly price-sensitive. Additionally, the use of buy now, pay later services supported this trend, with increasing examples of these offerings being leveraged to drive spending on big-ticket items, such as PCs. In China, government stimulus in the form of consumer subsidies helped to promote spending on notebooks amid a demand environment that had been weakening.”

“Looking ahead, the PC market is set for accelerating growth, primarily driven by commercial demand as businesses prepare for the end of Windows 10,” said Ishan Dutt, principal analyst at Canalys. “The advances showcased at CES 2025 highlight the industry’s commitment to making AI-capable PCs a halo category, enticing customers into conversations around a wider fleet refresh. As CPU and PC vendor roadmaps begin to bring on-device AI into more categories, price bands and regions, we anticipate that AI-capable PCs will account for 35% of worldwide shipments in 2025.”

Lenovo took the top spot in Q4 2024, shipping 16.9 million units worldwide, reflecting 4.9% year-on-year growth against an already strong shipment performance in Q4 2023. HP followed in second place with a 1.6% decline in shipments, totaling 13.7 million units globally. Dell held onto third place but declined in every quarter of the year, falling 0.2% in Q4. Apple remained in fourth place, shipping 5.9 million units with 3.1% annual growth, while Asus rounded out the top five, boasting the highest growth among the top vendors with a 21.6% year-on-year increase.