Lenovo Group has recently renewed its partnership with Formula 1 (F1), underscoring the growing significance of AI technology in motorsports. The collaboration, initially established in 2022, not only represents a convergence of racing and technology but also highlights the increasing demand for AI applications, which are becoming more rigorous and wide-ranging.
Strong performance in the first half of 2024
Matt Codrington, Vice President and Regional General Manager for Lenovo Asia Pacific, reports the firm has experienced significant growth in the first half of 2024. Revenue increased by 11% compared to the same period in 2023, while net profit soared by 65%.
Additionally, revenue from non-PC businesses rose from 41% to 47%, reflecting a diversification of the company's revenue streams.
Among specific business units, the Infrastructure Solutions Group (ISG) led with a remarkable growth rate of 65%. The Intelligent Devices Group (IDG) and Solutions and Services Group (SSG) achieved growth rates of 11% and 10%, respectively.
In the Asia Pacific region, Lenovo experienced a 20% increase in revenue, with non-PC business revenue climbing by 9.4 pp to 43.7%. Codrington attributes these results to the company's substantial increase in R&D investment and its proactive approach to seizing AI opportunities.
He noted that Lenovo's ISG boasts a comprehensive AI product portfolio and ranks third globally in AI infrastructure. The ISG has invested US$100 million in its AI Innovators program, delivering over 150 AI solutions and more than 70 AI-optimized platforms in its first year.
The SSG extensively integrates AI technology into its product offerings, including AI-enabled predictive support devices, embedded generative AI customer service, and AI-enhanced vertical industry solutions.
AI-fueled prospects
The AI revolution is reshaping the IT landscape, with the AI market expected to reach US$407 billion by 2027. Software is projected to account for approximately US$225 billion.
Services, hardware, servers, IT services, and applications will comprise US$84 billion, US$56 billion, US$49 billion, US$15 billion, and US$14 billion, respectively.
In the PC sector, the highly discussed AI PC market is expected to see AI PCs comprise 50% of all PCs by 2027. Lenovo is not only focusing on AI PCs but is also expanding AI applications in smartphones, embodying the concept of "from pocket to cloud."
Codrington emphasized Lenovo's commitment to gaining an advantage in the AI wave, planning to invest US$1 billion over the next three years to accelerate the deployment of AI technologies and applications. This investment will support the development of AI devices, AI infrastructure, and the integration of generative AI technologies into vertical industry solutions.
