Lenovo sees strong growth from non-PC businesses

Lenovo Group Ltd said on Friday that the revenue from its non-PC businesses reached 41 percent in the quarter that ended in December, as the Chinese tech company made progress in building a diversified growth engine.

Lenovo said its solutions and services group as well as its infrastructure solutions group grew their revenue to record highs of $1.8 billion and $2.9 billion respectively, up 23 percent and 48 percent year-on-year.

Overall, the company recorded a revenue of $15.3 billion and a net income of $437 million.

While the industry faces significant macroeconomic pressures, Lenovo said it sees long-term opportunities ahead as the global trends of digitalization and intelligent transformation continue accelerating and IT spending is expected to recover to a moderate growth rate in the mid-to-long term.

Yang Yuanqing, chairman and CEO of Lenovo, said "Today's solid results demonstrate that our service-led transformation strategy is paying off. Our diversified growth engines of non-PC business now account for over 40 percent of our group revenue and are driving solid profitability."

"Despite the complex macro environment, we retained our market leadership in PCs. I remain confident that our clear strategy, operational resilience, healthy liquidity and continued investment in innovation will ensure we can deliver long-term sustainable growth and improved profitability," Yang said.

At this year's World Economic Forum in Davos, Lenovo's Hefei factory, LCFC, was recognized as one of the 18 additional sites added to the Forum's Global Lighthouse Network of 132 leading manufacturers, each chosen for their leadership and integration of the fourth industrial revolution technologies.

LCFC is the flagship in Lenovo's network of more than 35 manufacturing sites across nine markets and ships products to 126 markets around the world. This is done while managing 300,000 individual pieces of materials and parts every day, 300 discreet new products every year, and more than 200,000 different product configurations, Lenovo said.