(Yicai Global) April 6 -- Lenovo Group will put more emphasis on its non-computer business, with the aim of increasing its share of revenue in the next fiscal year, as the Chinese personal computer giant battles a subdued PC market and uncertain macro-environment, the company chairman said today.

Lenovo has set a target for its non-computer business to generate an additional 2 percent of overall revenue in the next fiscal year ended March 31, 2024, Yang Yuanqing said that the Lenovo Kickoff 2023 conference.

The segment already contributed over 40 percent of total revenue for the first time in the three months ended Dec. 31, up from 31 percent three years ago, according to the Beijing-based company’s latest financial report. This demonstrates that Lenovo is successfully transitioning to becoming more service-oriented.

The mobile business group, which is part of its non-computer business, should aim for a 15 percent jump in revenue from the previous fiscal year and the solution and services group should target a 20 percent increase, Yang said.

Lenovo is moving into a new ‘post-pandemic’ phase and ‘post-high growth’ phase, Yang said. The time for new integrations has come and Lenovo needs to seize this opportunity.

Developing more growth points will help to offset some of the challenges Lenovo is facing and should herald a new growth curve. Computer shipments will continue to fall for some time, and growth is not expected until the second half at the earliest, Yang said, citing a forecast by International Data Corp.

But Lenovo’s research shows that the demand for personal computers is likely to still be higher than in 2019, before the pandemic, Yang said, adding that real market needs are a bit more optimistic than actual shipments.

Other obstacles include a high risk of a global economic recession and a complex macro-environment, Yang said. There are geopolitical risks and other factors that the firm cannot control. It is very likely that Lenovo will still need to operate amid an economic climate of high inflation, high rates and volatile exchange rates.

The high-tech sector is too complex and scattered, Yang said. Users cannot get a good cross-device and cross-ecology experience, and business clients also find it very hard to choose which base architecture and solutions most suit their needs.

Lenovo’s share price [HKG:0992] closed down 0.3 percent at HKD8.51 (USD1) today.

Editor: Kim Taylor