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Lenovo delivers strong FY Q1 performance

US$ millions Q1 FY 23/24

US$ millions Change Group Revenue 15,447 12,900 20% Pre-tax income 313 228 37% Net Income (profit attributable to equity holders) 243 177 38% Net Income (profit attributable to equity holders – non-HKFRS) [1] 315 191 65% Basic earnings per share (US cents) 1.99 1.48 0.51

 

Intelligent Devices Group (IDG): Double-digit revenue growth with leading profitability, winning in personal AI

Q1 FY24/25 performance:

  • IDG delivered a strong quarter of double-digit year-on-year revenue growth with revenue of US$11.4 billion and almost 1 point improvement in operating margin year-on-year.  
  • The PC business retained in market leadership in both shipments and device activations, with 23% global market share and a premium to the market in growth.
  • Both the smartphone and tablet businesses delivered strong year-on-year revenue growth of around 30%, with hypergrowth in premium smartphones.

Opportunities and Sustainable Growth:

  • IDG is encouraged by positive feedback from the initial launch of its AI PCs for the China market, with further global launches at IFA and Tech World later this year.  
  • The PC market is entering a new refresh cycle driven by AI PCs, with this category expected to grow to represent over 50% of the total PC market by 2027. The Group is confident it will lead the industry in market share for next-generation AI PCs. 
  • IDG will continue to deliver ground-breaking innovations across its portfolio to achieve the full potential of a personal AI agent, while at the same time leveraging and deepening its strategic partnerships to build a more diversified portfolio and richer ecosystem. 

Infrastructure Solutions Group (ISG): Hypergrowth with improved profitability, driving hybrid infrastructure