Lenovo Group has said it has logged revenue of $15.3 billion and a net income of $437 million in the third quarter (Q3) of FY2022-23, signalling strong momentum for its services and solutions business. The company has witnessed strong growth in India and has logged a total revenue of more than $400 million across all portfolios in the country in Q3.
“We are committed to investing in capability building to deliver for our customers beyond end-point devices and achieve our service-led transformation objectives with a broad suite of pocket-to-cloud offerings,” Shailendra Katyal, Managing Director, Lenovo India, said in a statement.
The global revenue from non-PC businesses reached a high of 41 per cent while its diversified growth engines of Solutions and Services Group (SSG) and Infrastructure Solutions Group (ISG) grew revenue to record highs of $1.8 billion and $2.9 billion, respectively, up 23 per cent and 48 per cent year-on-year (YoY).
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The company also hinted at job cuts in future as part of the overall cost reduction, says a report by news agency Reuters.
“With the help of new IT solutions, we are on our journey to becoming an end-to-end technology partner that enables intelligent transformation for our customers,” Katyal added.
While the industry faces significant macroeconomic pressures, Lenovo sees long-term opportunities ahead as the global trends of digitalisation and intelligent transformation continue to accelerate and IT spending is expected to recover to a moderate growth rate in the mid-to-long term.
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“Our diversified growth engines of non-PC business now account for over 40 per cent of our group revenue and are driving solid profitability. Despite the complex macro environment, we retained our market leadership in PCs,” said Yuanqing Yang, Chairman and CEO.
The company expects year-on-year growth to resume in the second half of the calendar year with end-user demand to be higher than pre-Covid levels.
According to research firm Gartner’s prediction last month, personal computer (PC) and smartphone shipments will fall for the second year in a row in 2023. Gartner further added that PC shipments are expected to dip 6.8 per cent this year after plunging 16 per cent last year.
(With inputs from IANS)