Lenovo reports year-on-year revenue decline for the fifth consecutive quarter. The company remains optimistic that the turnaround is imminent.

Lenovo announced its financial results for the past quarter yesterday. We gradually repeat ourselves when we write that the company’s sales and net profit decreased compared to the previous year. Sales fell by sixteen percent to 14.4 billion dollars, net profit fell by more than fifty percent (-54%) to 273 million. This is the fifth quarter in which Lenovo has reported a downward trend.

The reasons why sales and profits are falling also seem familiar to you by now. The PC industry is finding it difficult to get out of the doldrums. Lenovo is one of the manufacturers most affected by the market downturn and sees its unit volumes decline every quarter. The Chinese brand has managed to maintain its top position so far, but HP is getting closer. With its subsidiary brand Motorola, Lenovo also shares the malaise in the smartphone industry.

Careful recovery

Lenovo continues to preach optimism. CEO Yuanqin Yang says his company is on the road to recovery. There is actually some truth to these words when we look at the previous quarter. At that time, sales were less than thirteen billion dollars and net profit was also a hundred million dollars less. The upward path seems to have started cautiously again for Lenovo. Many companies would blindly commit to generating fourteen billion dollars in sales in a “low economy.”

Like every company today, Lenovo sees AI as the panacea to get sales back into the black. The company will invest an additional $1 billion to expand its product portfolio Infrastructure Solutions Group to develop further. Lenovo aims to position itself as a global leader in hardware and infrastructure to enable the development of artificial intelligence.