A new fiscal year, but not a fresh start for Lenovo. Because the PC market cannot recover, Lenovo closes another quarter with declining sales figures.

The PC manufacturer Lenovo is not experiencing a boom. This is again illustrated by the quarterly figures that Lenovo announced today. A total of almost thirteen billion dollars flowed into the company’s drawer. Many companies would register for it, but for Lenovo that means 24 percent less than it was allowed to report a year ago. Net income fell 66 percent to $177 million.

It has now been more than a year since Lenovo was able to report positive sales and profit growth. The explanation has remained the same throughout these quarters: Lenovo is having a harder time selling its PC products. Lenovo itself speaks of “challenging market conditions”.

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The Intelligent Devices Group division, which includes the brand’s PCs and is usually Lenovo’s best-selling business, brought in 28 percent less. This division also includes the smartphones of subsidiary Motorola, another sector in a difficult position.

Oddly enough, the downturn in the PC industry seems to be hitting Lenovo harder than companies like Apple and HP. IDC figures show that Lenovo sold 18 percent fewer PCs last quarter, while HP’s decline has stagnated and Apple is even selling more devices. Lenovo continues to maintain its position as the market leader with a 23 percent share, but HP has come closer again.

AI as a lifebelt?

Like every company today, Lenovo sees AI as the panacea to get sales back on track. The company announces an additional $1 billion investment to expand its product portfolio Infrastructure Solutions Group to develop. Lenovo aims to be the global leader in hardware and infrastructure to enable the development of artificial intelligence.